Ethereum price fell 5% over the past 24 hours, trading at $3,315 at 2:26 a.m. EST, while trading volume rose 46% to $71 billion.
That ETH price drop comes as 10x Research recommended shorting Ether as a potential hedge against Bitcoin.
According to the company, there are structural risks within the Ethereum network. The research firm also noted a decline in institutional demand as key factors influencing the strategy. This comes at a time when Bitcoin continues to attract treasury capital and Ethereum-focused companies are on the verge of running out of capital to invest in the asset.
According to 10X Research, this makes ETH a potential short position for investors looking to hedge their exposure to the digital asset sector.
LATEST: ⚡ 10x Research has identified Ethereum as a potential short position, highlighting structural weaknesses as Bitcoin continues to capture the bulk of institutional treasury capital. pic.twitter.com/s79Jgc0fy8
— CoinMarketCap (@CoinMarketCap) November 5, 2025
The analysts said the “digital asset treasury” narrative around Ethereum has led institutions to accumulate ETH and later distribute it to private investors, a pattern now broken down by a lack of transparency in private investment in public equity (PIPE) disclosure and uncertain capital flows.
10x Research then referenced BitMine, noting that the company’s strategy has allowed institutional investors to accumulate ETH at par and later distribute it to retail buyers at a premium, a feedback loop that has continued to drive up prices.
Ethereum Price Tests Key Support After Breaking Down to Rounded Top
The ETH price has recently entered a bearish phase after a strong rally earlier in 2025.
After reaching a local high near $4,915, Ethereum price formed a rounded top pattern, indicating a shift in momentum from bullish to bearish.
The price of ETH has since fallen sharply, settling below the USD 4,400 and USD 3,800 levels and is now testing the USD 3,200-$3,300 support zone.
That zone matches the Fibonacci retracement level of 0.618 ($3,221) from the previous rally, which is a crucial point where buyers often try to regain control.
The 1-day chart also shows that ETH has fallen below the 50-day Simple Moving Average (SMA) of $4,094, while it is currently close to the 200-day SMA at $3,378, a key long-term trend indicator. If the bulls manage to defend this support and push prices back above $3,500, it could confirm a potential recovery and avoid a deeper correction.
The Relative Strength Index (RSI) is currently around 30.86, close to oversold territory, showing that bears have control over the price.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator continues to support bearish momentum, with the blue MACD line well below the orange signal line.
ETH Price Outlook: Maintain Control, But Bounce Possible
From a technical perspective, the trend remains bearish as long as ETH price trades below both the 50-day and 200-day SMAs. Immediate resistance is around $3,545 (the Fibonacci level of 0.5), followed by $3,868.
A daily close above these levels could mark the start of a near-term recovery towards $4,000-$4,200.
Conversely, if the $3,200 support level does not hold, the next downside target is around $2,780-$2,800.
Overall, Ethereum’s chart structure indicates a market that is at a critical juncture, where the bears are in control, but technical indicators point to an impending oversold rebound.
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