The price of ether (ETH) is up 11% since falling below $3,000 on November 22, regaining key support levels. Analysts say increased institutional demand coupled with an end to quantitative tightening could next lead to a recovery towards $3,600.

Key takeaways:

• Demand for Ethereum is growing with the inflow of ETFs.

• The end of the Fed QT on December 1 will unlock liquidity in cryptocurrency markets.

• Ether’s V-shaped chart pattern points to a $3,600 target if key support holds.

Apparent demand for ether hits 26-month high

Ethereum’s apparent demand remains positive despite the recent decline and has risen to its highest level since September 2024.

Apparent demand is an indicator that measures market demand for Ether by measuring the difference between daily ETH issuance and the change in inventory (supply that has been inactive for over a year. Positive values ​​suggest increasing demand.

Capriole Investment’s Apparent Bitcoin Demand Indicator discovers demand for Ether skyrocketed to 90,995 ETH on November 26 from 37,990 ETH on November 22.

Related: High percentage of Bitcoin, ETH, SOL at a loss: is this a bear market sign?

Rising demand for ETH amid declines signals aggressive accumulation during price declines, pointing to an imminent rebound.

The last time demand was this high was in September 2023, when the price was between $1,500 and $1,700 after a 25% drop. This was followed by a 165% escalate in March 2024 to $4,100.

Meanwhile, flows in Ethereum cash ETFs turned positive, recording three consecutive days of inflows totaling $230.9 million.

The trend reversal came after the cardinal period from November 11 to November 20, when Ethereum funds lost a total of $1.28 billion, one of the longest and deepest red waves since the launch of ETFs.

Part of Ether’s ability to sustain a recovery above the $2,800 support comes from expectations that increased demand and ETF inflows will provide a tailwind that will push the ETH price higher.

End of QT: History Confirms Ether Price Rebound

The US Federal Reserve is expected to end quantitative tightening (QT) on December 1, which has historically preceded parabolic increases in ETH.

Once the QT ends, liquidity returns to the market and risky assets typically rebound.

“QT Ends December 1 – A Good Time to Zoom Out and Look at How Cryptocurrencies Performed the Last Time This Happened” – Front Runners Crypto Analysts he said in his latest post on X.

The attached chart shows that altcoins “actually outperformed $BTC post-QT” in the previous cycle, the analysts wrote, adding:

“BTC was already in a 200-day downtrend and liquidity rotation favored smaller assets.”

The above chart also shows that Bitcoin’s dominance peaked immediately after QT and then continued its downward trend, creating 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, in the last cycle it lost this level only long after the end of QT,” Front Runners added.

If history repeats itself, the end of QT will trigger a liquidity rotation that could see altcoins, led by ETH, outperform Bitcoin (BTC) in the coming months.

The key cost base area is around $2,800

According to Ether cost base distribution datainvestors purchased approximately 4.95 million ETH at an average cost of $2,800 to $2,830, creating a potential support zone.

This concentration suggests that many investors may defend the price around this level, which may make it a starting point for growth.

Analysts say ETH needs to maintain this support at $2,800 for the bulls to regain their footing.

“Ethereum is trading back at its big $2.8K level, which has been a strong support and resistance throughout this cycle.” he said Daan Crypto Trades on Monday’s X post, adding:

“It is essential that the bulls defend this area.”

As Cointelegraph reports, a break and close below $2,800 could signal the beginning of the next stage of declines to $2,400 and then to $2,100.

Ether’s V-shaped chart pattern is expected to be $3,600

Technically, Ether’s price action since early November is forming a potential V-shaped pattern on the four-hour chart, as shown below.

ETH is currently trading below the key supply zone between $3,000 and $3,500 where the 100- and 200-period elementary moving averages (SMAs) lie.

Bulls need to push the price above this area to escalate the chances of the price rising to the neck of $3,650 and completing a V-shaped formation. Such a move would mean a price escalate of 26% from the current level.

On the other hand, the SMA 50 Index provided key support at $2,891, reinforcing the importance of this demand area as mentioned earlier.

Commenting on the ETH/BTC chart, Michael van de Poppe, founder of MN Capital, said that ETH is preparing for a forceful upward move in the coming weeks.

“This cycle is not over yet.”

This chart remains very intriguing as I believe we will see a forceful breakout to the upside in the coming weeks $ETH.

I repeat: this cycle is not over yet. 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 risk, and readers should conduct their own research when making a decision.