Ether prices dropped to their lowest in over four months on November 19.
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Ether prices declined on Wednesday, November 19, reaching their lowest since July as “continued fears” of sustained losses fueled downward movement, according to analyst Tim Enneking.
The world’s second-largest cryptocurrency by total market value depreciated to less than $2,870, according to Coinbase data from TradingView.
At this point, the digital asset was trading at its most depressed value since roughly mid-July, and had fallen close to 40% since early October, additional Coinbase figures from TradingView reveal. Many other cryptocurrencies have suffered sharp declines since that time.
“Crypto has been struggling to find a bottom since the ATH’s on Oct. 6 or 7, depending where you live,” Enneking, managing partner of Psalion, noted via email.
“What we’ve seen since then is a slow-but-steady erosion of the price, to varying degrees, but with virtually nothing falling less than 25%,” he stated.
While various factors contributed to the aforementioned decline, “The proximate cause for today’s drop was continued fear – even extreme fear – of the erosion continuing,” claimed Enneking.
The digital asset experienced a relief rally later in the day, climbing above $3,000, but even then, it was down sharply from the highs it notched earlier this year.
While Enneking emphasized the impact that fear had on markets, several other analysts specifically pointed to variables like macro factors and bearish sentiment.
Julio Moreno, head of research for CryptoQuant, described conditions as “extremely bearish.”
He noted via Telegram that CryptoQuant’s Bull Score Index reached 20 on November 19, pointing to a severely bearish environment.
“This index, which ranges from 0 to 100, uses on-chain metrics such as network activity and liquidity to assess market health,” a post on the website clarified. “Historically, scores below 40 are associated with bearish conditions, while scores above 60 are required to sustain major bullish rallies.”
The YouTuber who goes by Wendy O also commented on this situation, specifically citing bearish sentiment and technical pressure as being the primary causes of ether’s latest declines.
“On the ETH 1D, all EMAs (9,20,50,100,200) are in a downtrend which indicates bearish price action,” she emphasized through emailed commentary.
William Stern, founder of Cardiff, took a different view, focusing on macro developments.
“The primary driver of Ether’s collapse to $2,870 isn’t technical; it’s macro,” he stated via email. “The market was pricing in a guaranteed December rate cut, but the Federal Reserve just poured ice water on that fantasy.”
“With inflation remaining ‘uncomfortably persistent,’ the Fed has flipped hawkish, strengthening the dollar and crushing risk assets,” Stern continued. “Ether is simply the highest-beta victim of this new reality.”
Independent cryptocurrency analyst Armando Aguilar also focused on global macro developments.
“Mid-October, President Trump announced new ‘massive’ tariffs on China which triggered a market sell off across markets, pushing investors into risk-off assets,” he noted via emailed correspondence.
“Last week, Fed Chair Jerome Powell cautioned investors about expecting future rate cuts, adding to existing bearish market sentiment,” added Aguilar.
He also highlighted the effect that digital asset treasury companies are having on ether, stating that their dry powder has “vanished” and some of them are being forced to sell cryptocurrency to repurchase shares, which is also a source of downward price pressure.
Mostafa Al-Mashita, cofounder & director of sales and trading for Secure Digital Markets, also emphasized the impact that DATs have been having on the values of digital assets.
“The crypto market is still trying to find its footing after DAT and ETF selloffs took the wind out of the sector,” he stated via email.
“A lot of this starts with macro, and ETH naturally lives further out on the risk curve than BTC, so nothing about this selloff feels new or systemic to Ethereum,” the analyst added.
“Institutions just know exactly how to treat Bitcoin, and outside of stablecoins, most are still figuring out what DeFi even means for their business,” he said.
“Macro isn’t doing much to help either. Rate-cut odds for December slid to thirty-six percent, and the market pulled risk ahead of NVIDIA earnings, waiting for a read on AI demand, capex, and the broader growth picture,” stated Al-Mashita.
“The good news is NVIDIA beat earnings and the stock is up around five percent after hours. If that strength holds, it takes some pressure off the tape and gives risk assets a bit more room to breathe,” he stated.
“BTC’s correlation to the S&P 500 continues to sit near 0.7, so for now the market is still tied to the broader moves from Trump, macro policy, and A.I.”
