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Crypto analyst and founder of MN Capital, Michael van de Poppe, hinted that Ethereum (ETH) flashed buy signals, rallying positive sentiment. This comes following an extended period in the red zone as the asset trades below $3,300, a 4% decline in the last 24 hours. 

On-chain data shows positive metrics aligning for the top altcoin by market cap after the recent dip that wiped out billions. The reversal has onboarded high expectations, suggesting an end to the slope. 

Poppe described the bear sting as a little deeper-than-expected on the back of heavy institutional outflows. However, he explained that the asset is in a great accumulation zone, sharing data on X. 

Similarly, digital asset expert Ash Crypto wrote that present trading conditions are similar to a bear trap, hoping for a price rebound above $5k before the end of the year. A slight uptick followed these signs in price, before the market moved back to sideways territory. 

On-chain analytics firm Santiment noted that traders are increasingly bullish, although the Fear and Greed Index remains in the red. 

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“Ethereum traders have quickly pivoted from being extremely bearish to extremely bullish, according to social media data. But is retail getting overly eager? Historically, we want to see continued FUD like $ETH was having on Tuesday. When the #2 market cap nearly rebounded to $3,500 yesterday, the crowd took it as a cue that the asset was back in business. But just like their sell-off helped fuel the rally the past couple days, their FOMO can now halt it.”

Meanwhile, most traders backed the projected price jump above $5k as funds circulate in from Bitcoin. Last week, institutional Bitcoin funds lost $946 million, while altcoins gained over $500 million. Specifically, Ethereum saw $57.6 million in inflows, while Solana and XRP recorded gains of $421 million and $43 million, respectively. 

While Ethereum’s average in November has struggled through the years, institutional capital has become a rallying point for retail traders. The asset’s corporate accumulators are another indicator of growing interest in recent months. 

Recall that earlier this year, several wealth managers backed Ethereum for growth, citing its staking feature and an altcoin season. A sudden spike above the $5k mark could trigger the altcoin season marked with Capital redistribution. Ethereum whales have also started slow accumulations, looking to buy at favorable prices.