Ether Falls to Lowest Level Since July Amid Bearish Market Fears

On November 19, the price of ether, the second-largest cryptocurrency by market value, dropped to its lowest point since mid-July. The digital asset fell below $2,870 amid ongoing fears of further losses, according to analyst Tim Enneking.

Figures from Coinbase data from TradingView showed ether had declined nearly 40% since early October. This trend aligns with widespread declines in many other cryptocurrencies during the same period.

Enneking, managing partner of Psalion, described the market as experiencing “a slow-but-steady erosion of the price, to varying degrees, but with virtually nothing falling less than 25%.” He emphasized that the day’s drop was driven primarily by “continued fear – even extreme fear – of the erosion continuing.” Later in the day, ether recovered somewhat, rising above $3,000 but staying well below earlier highs from the year.

Other experts linked the decline to both bearish market sentiment and macroeconomic factors. Julio Moreno, head of research at CryptoQuant, said the market was “extremely bearish” and pointed to the platform’s Bull Score Index reaching 20, a level indicating weak market health. The index uses on-chain data like network activity and liquidity to measure conditions, with scores under 40 suggesting bearish trends.

The YouTube analyst known as Wendy O noted that ether’s technical indicators, specifically all exponential moving averages (EMAs) on daily charts, are trending downward, signaling sustained bearish price action.

Meanwhile, William Stern, founder of Cardiff, identified macroeconomic causes as central to ether’s price drop. He stated that the market had expected a Federal Reserve rate cut in December, but recent hawkish comments from the Fed ended those expectations. Stern explained this shift strengthened the U.S. dollar and pressured risk assets, with ether being particularly affected as a high-risk investment.

Independent analyst Armando Aguilar added that tariffs announced in mid-October and Fed Chair Jerome Powell’s cautious remarks on future rate cuts increased negative market sentiment. Aguilar also highlighted that digital asset treasury companies (DATs), entities that manage large cryptocurrency holdings, have sold off assets to repurchase shares, putting additional downward pressure on ether.

Mostafa Al-Mashita, cofounder and director of sales and trading at Secure Digital Markets, echoed this view, stating the crypto market is still adjusting after selloffs by DATs and exchange-traded funds (ETFs). He noted that ether carries higher risk compared to Bitcoin and that uncertainty remains about how decentralized finance (DeFi) fits into institutional strategies.

Al-Mashita also pointed out macroeconomic factors continue to affect prices, with the odds of a Fed rate cut in December dropping to 36%. He mentioned that the market was cautious ahead of NVIDIA earnings, which later showed strength, potentially easing some pressure on risk assets. He noted bitcoin’s correlation to the S&P 500 remains high at about 0.7, reflecting the influence of broader market conditions including trade policies, Fed policy, and developments in Artificial Intelligence.

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