Prominent Analyst: Can Ethereum Break $3,700 to Validate Whether the Bull Market Has Ended

Solana co-founder Anatoly Yakovenko published a post stating that Layer 1 (L1) teams should prioritize developing native products built on their own L1 blockchains, rather than abandoning this direction amid external skepticism. He noted that product-market fit (PMF) is extremely difficult to achieve, with every product facing high failure risks. Additionally, only by actually building products on their own blockchain can teams identify functional gaps in their ecosystem relative to competitors.

According to on-chain analyst Ai Yi (@ai_9684xtpa), a trader who has generated $21.78 million in gains this year opened a 20x leveraged short position on ETH ahead of the recent price plunge, and now holds an unrealized profit of over $1.587 million. On October 30, the trader closed out long positions of 10,000 ETH and 1,000 BTC, locking in profits exceeding $20.553 million. Around 2 PM yesterday, after a six-day hiatus, the trader took action again, opening a short position of 30,000 ETH valued at $66.87 million at an average entry price of $2,283.23.

According to Lookonchain's monitoring, a "smart money" trader with a 100% win rate has again gone long on ETH. After the market dip, they opened a long position of 20,277 ETH (approximately $45.3 million) with 25x leverage, and currently holds an unrealized profit of $252,000. The trader has profited from all 10 of their prior trades, with a cumulative realized profit of $6.32 million.

Carlos, Growth Lead at on-chain transaction execution platform Definitive, tweeted that his old hot wallet was emptied early this morning in a suspected large-scale attack launched by "noble.base.eth", linked to the Railway vulnerability. He confirmed the transfers were signed by his own wallet, meaning the theft stemmed from a mnemonic or private key leak. All 96 victim wallets emptied within roughly 70 minutes followed the same pattern, so he advised users holding hot wallets to rotate their keys immediately. The attacker used Relay as the primary withdrawal channel, and Relay subsequently stated it has blocked the relevant wallets.

US stocks suffered a sharp selloff during Thursday's intraday trading. The Nasdaq Composite closed down 5.52%, the S&P 500 fell 4.36%, and the Dow Jones dropped 3.44%, marking the worst single-day performance in nearly 19 months. Tech and chip stocks led the decline, with S&P 500 companies' market capitalization erasing roughly $3 trillion intraday; the VIX fear gauge surged 11.57 points to around 28.2 over the same period. The selloff was primarily driven by expectations of Democrats controlling Congress after the midterm elections, as well as market concerns over AI data center development and tighter regulation. Tech and chip stocks led the drop, with the Philadelphia Semiconductor Index falling more than 12%. During the market downturn, capital clearly flowed into safe-haven assets: - US short-term bonds were in high demand: the 2-year Treasury yield plummeted roughly 11-12 basis points to around 4.47%, while the 10-year yield dropped 5-6 basis points to 4.84%, steepening the yield curve. - Spot gold rose around 1% to close at roughly $4,090-$4,100 per ounce. - The Japanese yen and Swiss franc strengthened. - Berkshire Hathaway hit an all-time high intraday; while it pulled back slightly at close, it still significantly outperformed the broader market, reflecting inflows of defensive capital. Going forward, the market will continue to monitor employment data, Federal Reserve statements, and AI-related policy implementations, which may impact the sustainability of these capital flows. Notably, the US October unemployment rate and seasonally adjusted nonfarm payrolls data will be released at 21:30 ET tonight, which is expected to drive significant market volatility.

According to Bitget's market data, Japan's TOPIX has fallen to its lowest level since April, with the latest decline exceeding 6%.