Bitcoin Rebounds Above $78,000 as Ethereum Shows Signs of a Trend Reversal

Bitcoin recovered above $78,000 on November 4 after an election-driven sell-off briefly pushed the cryptocurrency below $76,000. Ethereum also moved higher, with technical indicators pointing to improving momentum against Bitcoin.

The rebound followed the U.S. midterm elections, where Democrats secured control of Congress. The result initially unsettled cryptocurrency markets because investors questioned whether a Democratic-led Congress could slow President Donald Trump’s crypto-friendly legislative agenda.

However, prices recovered as the election uncertainty eased. A weaker U.S. dollar and improving sentiment across broader financial markets also helped support demand for riskier assets.

Bitcoin climbed to approximately $78,354, while Ethereum gained around 1.4% to trade near $2,323, according to market data reported on November 4.

Bitcoin Recovers After Election-Driven Volatility

Bitcoin initially fell toward $75,600 as election results pointed to a Democratic victory in both chambers of Congress. The outcome raised concerns about potential delays to crypto legislation and other regulatory initiatives supported by the Trump administration.

However, the decline proved temporary. Bitcoin recovered as traders reassessed the political implications and reduced positions taken ahead of the election.

The move also coincided with a broader improvement in market sentiment. A weaker dollar helped support risk assets, while cryptocurrency prices moved higher alongside a recovery in stock futures. 

Derivatives activity also contributed to the market's volatility. Total crypto liquidations reached approximately $469 million over 24 hours, while futures trading volume increased 27%. These figures suggest that traders were actively adjusting positions during the recovery, although liquidation-driven buying does not necessarily represent fresh long-term demand. 

Bitcoin's rebound follows a difficult period for the market. Altcoin Buzz previously reported on Bitcoin's recovery toward $78,000 as Binance addressed the aftermath of its security breach and investors assessed institutional demand ahead of the midterms. That earlier recovery now provides additional context for the latest price movement.

Ethereum Breaks A Key Trendline Against Bitcoin

Ethereum has also shown signs of improving momentum, particularly against Bitcoin.

On November 3, the ETH/BTC trading pair moved above a descending trendline on a daily chart shared by market analysts. The pair traded near 0.02955 after breaking through resistance that had limited previous recovery attempts.

The development suggests Ethereum may be gaining relative strength against Bitcoin. This is important because sustained ETH outperformance can sometimes support broader altcoin momentum.

However, the breakout remains a technical signal rather than confirmation of a longer-term trend reversal. Ethereum still needs to overcome additional resistance before the market can establish whether buyers have regained control. 

In dollar terms, Ethereum traded around $2,323 on November 4. The $2,350 level remains an important resistance area. A sustained move above it could strengthen the recovery, while a failure to break through may leave ETH vulnerable to another period of consolidation.

Ethereum ETF Outflows Remain A Concern

Despite improving price action, institutional demand has not fully recovered.

U.S. spot Ethereum ETFs recorded approximately $85.3 million in net outflows on November 3. This extended the withdrawal streak to seven consecutive trading sessions, bringing cumulative outflows during that period to approximately $656.4 million. 

Bitcoin ETFs also continued to experience withdrawals. Spot Bitcoin funds recorded approximately $115.6 million in net outflows on November 3, adding to the selling pressure observed during the preceding sessions. 

These withdrawals highlight the difference between short-term price momentum and sustained investment demand. A cryptocurrency can recover as traders close bearish positions or respond to improving sentiment, even while ETF investors continue reducing exposure.

Altcoin Buzz previously examined how Bitcoin and Ethereum ETF outflows reflected weakening institutional flows. The latest withdrawals suggest that demand for regulated crypto investment products remains uneven.

Can The Recovery Continue?

Bitcoin's move above $78,000 and Ethereum's improving ETH/BTC structure offer encouraging signals after the election-driven volatility. However, both assets still face important hurdles.

For Bitcoin, maintaining its recovery and moving through nearby resistance will be important. For Ethereum, clearing $2,350 could provide stronger evidence that its recent technical improvement is translating into price momentum.

ETF flows will also remain an important indicator. A return to consistent inflows could provide additional support, while continued withdrawals may limit the strength of the recovery.

For now, the market has recovered from its initial reaction to the U.S. midterm results. Whether that rebound develops into a sustained upward move will depend on continued buying demand, improving liquidity, and the ability of Bitcoin and Ethereum to hold their newly reclaimed levels.