Ether (ETH) price is up 11% since falling below the $3,000 mark on November 22, reclaiming key support levels. Analysts say increased demand from institutions, coupled with the end of quantitative tightening, could lead to a recovery towards $3,600 in the future.
Key takeaways:
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Ethereum demand is recovering along with ETF inflows.
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The end of the Federal Reserve’s QT on December 1 will unlock liquidity in crypto markets.
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Ether’s V-shaped chart pattern hints at a target of $3,600 if key support holds.
Ether Apparent Demand Hits 26-Month High
Apparent demand for Ethereum has remained positive despite the recent drawdown and has risen to its highest level since September 2024.
Apparent demand is a metric that measures market demand for Ether by measuring the difference between the daily issuance of ETH and the change in inventory (supply that has been dormant for over a year. Positive values suggest an increase in demand).
Capriole Investment’s Bitcoin Apparent Demand metric reveals that Ether demand has increased sharply to 90,995 ETH on November 26, from 37,990 ETH on November 22.
Related: High Percentage of Bitcoin, ETH, and SOL Held at Losses: Is It a Bearish Market Sign?
Rising demand for ETH amid a decline indicates aggressive accumulation in price declines, pointing to an imminent rebound.
The last time demand was this high was in September 2023, when the price ranged between $1,500 and $1,700 after a 25% drop. This was followed by a 165% rally to $4,100 in March 2024.
Meanwhile, Ethereum ETF spot flows have turned positive, recording inflows for three consecutive days, totaling $230.9 million.
The reversal came after a tough stretch from Nov. 11 to Nov. 20, when Ethereum funds lost a combined $1.28 billion, one of the longest and deepest red waves since the launch of the ETFs.
Part of Ether’s ability to sustain a recovery above the $2,800 support comes from expectations that rising demand and ETF inflows will provide tailwinds that drive the price of ETH higher.
End of QT: History supports Ether price rally
The US Federal Reserve is expected to end quantitative tightening (QT) on December 1, something that has historically preceded ETH parabolic rallies.
When the QT ends, liquidity returns to the market and risk assets typically recover.
“The quarter ends on December 1 – it’s a good time to zoom out and look at how cryptocurrencies performed the last time this happened,” cryptocurrency analysts Front Runners said in their latest post on X.
An accompanying chart reveals that altcoins “actually outperformed $BTC after QT ended” in the previous cycle, the analysts wrote, adding:
“BTC had already been in a 200-day downtrend and liquidity rotation favored smaller assets.”
The chart above also shows that Bitcoin dominance peaked immediately after QT and then continued to trend lower, forming a double top during the COVID-19 period before resuming its decline.
“The difference this time is that BTC is already below the 50W SMA, last cycle it only lost that level long after QT ended,” Front Runners added.
If history repeats itself, the end of QT will trigger a liquidity rotation that could push altcoins, led by ETH, to outperform Bitcoin (BTC) in the coming months.
Key cost base area is around $2,800
According to Ether cost base distribution data, investors acquired approximately 4.95 million ETH at an average cost between $2,800 and $2,830, creating a potential support zone.
This concentration suggests that many investors can defend the price around this level, which could make it a launching pad for a rally.
Analysts say ETH must hold this support at $2,800 for the bulls to regain their footing.
“Ethereum is trading back towards its big $2,800 level, which has acted as strong support and resistance throughout this cycle,” Daan Crypto Trades said in a Monday X post, adding:
“It is essential that the bulls defend this area.”
As Cointelegraph reported, a break and close below $2,800 could signal the start of the next leg of the decline to $2,400 and then the $2,100 level.
Ether V-Shaped Chart Pattern Targets $3,600
From a technical perspective, Ether price action has been forming a potential V-shaped chart pattern on the four-hour chart since early November, as shown below.
ETH is now trading below a key supply zone between $3,000 and $3,500, where the 100 and 200 period simple moving averages (SMA) sit.
The bulls need to push the price above this area to increase the chances of the price rising to the neck line at $3,650 and completing the V-shaped pattern. Such a move would represent a 26% price increase from current levels.
On the downside, the 50 SMA provided key support at $2,891, reinforcing the importance of this demand area, as mentioned above.
Commenting on the ETH/BTC chart, Michael van de Poppe, founder of MN Capital, said that ETH was preparing for a strong upward move in the coming weeks.
“This cycle is far from over.”
This chart is still very interesting as I think we will see a strong bullish breakout in the coming weeks to $ETH.
I repeat: this cycle is far from over. pic.twitter.com/T1wFgVAN44
—Michaël van de Poppe (@CryptoMichNL) November 26, 2025
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
