Ethereum (ETH) has recently plunged below the $3,000 mark, hitting a four-month low and sparking concerns about the continuation of the bull market. This decline reflects a broader downturn in the cryptocurrency market, with Bitcoin also experiencing a significant drop.
As of November 17, 2025, Ethereum's price hovers around $2,964.7, showing a slight increase of 0.74% in the past 24 hours. However, it has fallen by 13.01% over the last week and 18.72% over the past month. The current market capitalization of Ethereum is approximately $357.82 billion.
Several factors contribute to this bearish trend. One significant factor is excessive leverage in the market, leading to substantial liquidations. Approximately $800 million in leveraged positions were liquidated within a 24-hour period, affecting over 150,000 traders.
Another factor is the increasing outflows from Ethereum ETFs, indicating waning institutional confidence. Since late October, over $1.4 billion has exited U.S. spot Ether ETFs, creating sustained selling pressure. This trend suggests that institutional investors are reducing their exposure to Ethereum, further contributing to the price decline.
Additionally, long-term holders are selling their ETH at the fastest rate since 2021, adding to the supply in the market. Wallets that have held ETH for three to ten years are now actively distributing their holdings, creating a supply wave that exchanges are struggling to absorb.
Technical analysis reveals that Ethereum is trading within a deeply compressed downtrend, facing repeated rejections from lower-high resistance levels. The price has stabilized within the $3,000 - $3,100 demand block, which has historically attracted medium-term buyers. However, unless the price reclaims the $3,450 - $3,550 range, the market remains vulnerable to continued pressure towards the $2,600 demand zone.
Despite the overall bearish sentiment, some analysts point to potential signs of a relief expansion if buyers reclaim key levels. A visible positive divergence in the Relative Strength Index (RSI) indicates a slowdown in bearish momentum. Moreover, the presence of long downside wicks suggests aggressive buyer absorption near the $3,000 zone.
On-chain analysis highlights a dense concentration of resting long liquidations between $3,600 and $3,900, which could act as a primary liquidity magnet for any upward expansion. However, liquidity below the current price level is thinner, suggesting that any downward continuation is likely to be sharp but short-lived.
Some analysts believe that the current correction differs from previous market downturns, as it is primarily driven by excessive leverage rather than specific industry events or macroeconomic uncertainty. Others suggest that Bitcoin's inability to maintain levels above $100,000 marked the beginning of the current downward trend.
While the short-term outlook remains uncertain, some forecasting models suggest a potential trend reversal. Ethereum has shown fresh momentum after a period of sharp volatility, and traders are evaluating whether the market is preparing for a potential recovery towards the $4,400 level.
Overall, Ethereum's fall to a four-month low below $3,000 has raised concerns about the continuation of the bull market. Factors such as excessive leverage, ETF outflows, and selling pressure from long-term holders have contributed to the decline. While technical and on-chain analysis provide some hope for a potential recovery, the market remains vulnerable to further downside pressure. Investors should exercise caution and closely monitor market dynamics before making any investment decisions.
