Ethereum News Update: Ethereum's Downturn Reflects Coordinated Withdrawal from Both Crypto and Traditional Markets

On November 17, Ethereum slipped beneath the $3,000 threshold, declining by 2.3% over the previous day as the broader cryptocurrency sector endured its most challenging session in several months. ETH dropped to $2,978, closely tracking Bitcoin’s 3.21% fall to a six-month low of $91,545, highlighting a synchronized downturn across digital currencies. The wave of selling

, where both the S&P 500 and Nasdaq ended the day below important moving averages after experiencing their sharpest single-day decline in a month.

Technical analysis indicated a negative outlook for

. The cryptocurrency was unable to maintain levels above $3,200, falling through significant moving averages and a key trendline on the hourly chart. Market observers pointed out that if the $3,280 resistance is not reclaimed, ETH could slip further, first testing the $3,000 support and possibly dropping to $2,880. On-chain metrics from sources such as Glassnode showed that realized losses were stabilizing, implying that short-term investors were selling at a loss, while long-term accumulation remains vital for a lasting rebound .

The downturn extended beyond price movements. Crypto investment products saw $2 billion withdrawn last week, the largest outflow since February 2025, according to CoinShares. Ethereum ETFs alone experienced $689 million in redemptions, accounting for 4% of their managed assets. James Butterfill, head of research at CoinShares,

and significant selling by large holders. At the same time, ETFs suffered even greater outflows, losing $1.38 billion, which further deepened the negative sentiment .

Institutional moves highlighted the market’s weakness. In contrast, Ark Invest took an opposing stance, investing $39.6 million in crypto-related stocks such as Bullish, Circle, and Bitmine as prices fell. These acquisitions occurred as shares of Circle and Bitmine dropped by nearly 9%,

during turbulent conditions.

Macroeconomic developments added to the strain. The Empire State Manufacturing Index reached 18.7, an increase of 8 points from October, which dampened hopes for a Federal Reserve rate cut in December. According to Polymarket, there is now a 55% likelihood that rates will remain unchanged, while CME Group data suggests a 60% probability of no policy change. from central banks could extend the crypto market’s downturn.

Ethereum’s short-term prospects remain uncertain. The 200-day moving average at $2,550 has historically provided support, but ETH is currently confined within a narrowing descending wedge, which could lead to a sharp downward move.

that spot ether ETFs have seen net outflows in four of the last five weeks, undermining long-term investor confidence. Market participants are now monitoring whether Ethereum can hold above $3,000 or if it will in the near future.

The fragility of the market was further emphasized by a surge in put option volume, which surpassed call volume for the first time in several weeks. This trend suggests that traders are either hedging against further losses or speculating on additional declines, indicating a stronger risk-averse sentiment

.