Ether prices took a hit on Wednesday, November 19, hitting their lowest point since July as “continued fears” of prolonged losses drove the downward trend, according to analyst Tim Enneking. The world’s second-largest cryptocurrency by total market value has seen a decline, dropping to under $2,870, as reported. Currently, the digital asset is trading at its lowest value since around mid-July, having plummeted nearly 40% since early October, according to additional figures. Numerous other cryptocurrencies have experienced significant downturns since that period. “Crypto has been struggling to find a bottom since the ATH’s on Oct. 6 or 7, depending where you live,” Enneking stated. “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. Amidst the multitude of influences leading to the noted decline, “The proximate cause for today’s drop was continued fear – even extreme fear – of the erosion continuing,” asserted Enneking. The digital asset saw a relief rally later in the day, rising above $3,000; however, it remained significantly lower than the peaks it reached earlier this year. Enneking highlighted the significant influence of fear on market dynamics, while various analysts noted that macro factors and bearish sentiment also played crucial roles.
Julio Moreno characterized the market conditions as “extremely bearish.” He highlighted, indicating a significantly bearish atmosphere. “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 indicate bearish conditions, whereas scores above 60 are necessary to maintain significant bullish rallies.” Wendy O weighed in on the matter, pointing out that bearish sentiment and technical pressure are the main factors driving ether’s recent downturns. “On the ETH 1D, all EMAs (9,20,50,100,200) are in a downtrend which indicates bearish price action,” she stated in her emailed commentary. William Stern adopted a distinct perspective, emphasizing macro developments. “The primary driver of Ether’s collapse to $2,870 isn’t technical; it’s macro,” he noted in an email. “The market had been anticipating a sure December rate cut, but the Federal Reserve just doused that expectation with cold reality. With inflation remaining ‘uncomfortably persistent,’ the Fed has flipped hawkish, strengthening the dollar and crushing risk assets,” Stern continued. “Ether is undoubtedly the highest-beta casualty of this new reality.”
Independent cryptocurrency analyst Armando Aguilar has also turned his attention to 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. “Last week, Fed Chair Jerome Powell cautioned investors about expecting future rate cuts, adding to existing bearish market sentiment,” stated Aguilar. He also emphasized the impact that digital asset treasury companies are having on ether, noting that their dry powder has “vanished” and that some are compelled to sell cryptocurrency to buy back shares, contributing to downward price pressure. Mostafa Al-Mashita, cofounder and director of sales and trading for Secure Digital Markets, highlighted the significant influence that DATs are exerting on the valuations 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 remarked in an 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 stated. “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 stated.
“The macro environment isn’t providing much assistance 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 positive development is that NVIDIA surpassed earnings expectations, resulting in a roughly five percent increase in after-hours trading.” “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 remains around 0.7, indicating that the market continues to be influenced by broader movements related to Trump, macro policy, and A.I.”