Despite the third largest spot outflow since October Ethereum traders

traders are buying on dips.

Ethereum is potentially showing signs of a bullish trend as investors are buying on dips during its recent downturn, a pattern that has also been observed before price surges.

According to Coinglass data, Ethereum's spot exchange netflow reached -$359 million on November 3, the third-largest single-day outflow since October.

A negative netflow indicates that more Ethereum was transferred from exchange wallets than deposited in private custody, which is generally interpreted as bullish among crypto investors.

Since this activity is consistent with the recent decline, it could be seen as investors buying on dips to maintain their investments for the long term.

Two previous instances of large outflows, including $677 million on October 10 and $361 million on October 21, saw prices rise by 13% and 7.9%, respectively.

According to CoinGlass data, the recent sell-off, which sent Ethereum to an intraday low of $3,466, also resulted in the sale of $325 million in long positions—a leveraged outflow that often precedes a bullish reversal.

Bitmain added $294 million in Ethereum amid bullish speculation by Tom Lee about Bitcoin and ETH prices.

"The $359 million spot outflow of Ethereum is significant," Shivam Thakral, CEO of Indian exchange BuyUcoin, told Decrypt. He further added, "This could be a sign of renewed accumulation or dip-buying. Typically, when investors remove Ethereum from exchanges, it indicates growing confidence and a desire to hold it for the long term."

Asked whether the historical pattern of 7% to 13% surges will repeat, the analyst said that "signals are leaning towards a bullish trend," but further progress depends on whether new demand emerges in the coming sessions.

He also noted that Ethereum's typically strong seasonal trend toward the end of the year could further amplify any potential surge. Thakral added, "Historical favorable conditions could further amplify this surge, especially if on-chain activity and staking flows remain strong."