Ethereum, the world’s second-largest cryptocurrency, fell to its lowest level in more than four months on Wednesday as analysts warned that fear and worsening market sentiment are driving sustained losses across the digital asset sector.
The price of ether dropped below $2,870 on November 19, according to Coinbase data, marking its weakest level since mid-July. The cryptocurrency has now fallen nearly 40% since early October, alongside broad declines across the crypto market.
Analyst Tim Enneking, managing partner at Psalion, said the market has struggled to stabilise since reaching all-time highs in early October. He described the current trend as a “slow-but-steady erosion” affecting nearly all major cryptocurrencies, with few assets falling less than 25%.
Enneking added that the immediate trigger for Wednesday’s drop was “continued fear – even extreme fear – of the erosion continuing,” though prices later bounced above $3,000 in a brief relief rally.
Other analysts pointed to a mixture of macroeconomic pressures and bearish market signals. Julio Moreno, head of research at CryptoQuant, said conditions are “extremely bearish,” citing the firm’s Bull Score Index, which fell to 20 on November 19. Scores below 40 typically indicate bearish conditions.
Technical indicators are also flashing warning signs. Crypto commentator Wendy O noted that all major exponential moving averages on ether’s daily chart are now in a downtrend, signalling ongoing negative momentum.
Some analysts focused on the broader economic environment. William Stern, founder of Cardiff, said ether’s decline is largely driven by shifting expectations around U.S. interest rates. Markets had been expecting a December rate cut, but recent comments from the Federal Reserve have dampened those hopes, strengthening the U.S. dollar and hurting risk assets.
Independent analyst Armando Aguilar linked the downturn to wider market turbulence, including new tariffs on China announced in mid-October and recent remarks from Fed Chair Jerome Powell urging caution over future rate cuts.
Another factor weighing on prices is selling activity from digital asset treasury companies (DATs). Analysts say these firms have reduced their reserves and, in some cases, sold crypto to buy back shares, adding further downside pressure.
Mostafa Al-Mashita, cofounder of Secure Digital Markets, said the market is still recovering from recent DAT and ETF selloffs. He added that macroeconomic uncertainty—including shifting rate-cut odds and market caution ahead of major tech earnings—continues to influence crypto prices.
Despite the turbulence, Al-Mashita noted that strong earnings from NVIDIA may ease some market pressure, as bitcoin remains closely correlated to the S&P 500. For now, analysts say the crypto market’s direction will continue to depend on broader economic signals and investor sentiment.
