#EthereumPriceAnalysis

Ethereum(ETH) has recently entered a significant downtrend. As of November 4, 2025, ETH was trading around $3,700–$3,800, a decline from its October peaks of over $4,000. This decline stemmed from both pressures in the broader crypto market and dynamics specific to Ethereum.

The primary reasons for this decline are summarized below:

1. Liquidations and Selling Pressure in the Crypto Market

In the last 24 hours, the price of Ethereum fell 4.6% to $3,714. This move was driven by total crypto liquidations exceeding $1.1 billion. Heavy selling, particularly by US traders, and concerns about high interest rates increased selling pressure across the market.

2. Declining ETF Flows and Loss of Institutional Momentum

Institutional interest in Ethereum ETFs began to wane after their launch. The reversal of institutional inflows, known as "DAT money," from neutral to negative has accelerated the capital rotation toward Bitcoin. This is putting downward pressure on Ethereum's price.

3. DeFi Liquidity Contraction and Network Activity Slowdown

DeFi TVL (Total Value Locked) in the Ethereum ecosystem has decreased by 3% in the last 24 hours. Users' shift to Layer-2 solutions like Base and Arbitrum has weakened transaction demand on the mainnet. This, in turn, is reducing Ethereum's underlying usage momentum.

4. Technical Indicators and Profit Taking

Technical analysis indicators indicate short-term weakness:

RSI: 27.7 (oversold territory)

MACD: Showing negative expansion

Price: Below the Bollinger Band

Whales are profit-taking ahead of potential macro news, while deleveraging of leveraged positions is accelerating the decline. During this period, the $3,550–$3,600 support zone is critical.

5. Ethereum Foundation Sales and Internal Pressures

The Ethereum Foundation sells up to approximately 15% of its reserves annually, in accordance with its treasury policy. Between April and October 2025, the Foundation sold approximately 36,000 ETH ($65–$72 million). These sales create persistent supply pressure that limits price rallies.

6. Macroeconomic Uncertainties and Market Dynamics

Factors that reduce risk appetite in global markets are also negatively impacting Ethereum:

Weakening expectations for a Fed interest rate cut

US–China trade tensions and the Trump administration's new tariffs

ADP employment data and cautious statements from Fed officials

Furthermore, an average 4.4% decline in AI-themed tokens and Layer-2 projects has increased pressure on Ethereum. High correlation with Bitcoin supports ETH's weak performance.

7. Historical Perspective and Outlook

While November is historically known for an average positive return of 36.5% for Ethereum, 2025 presents mixed signals. While whales appear to be buying again, profit-taking by long-term investors could delay the recovery.

Analysts anticipate a short-term buyback if the $3,674 level holds. However, trade wars, macro uncertainties, and regulatory developments remain risks.

Conclusion:
The current pullback in Ethereum is due to a combination of global market pressures and internal ecosystem factors. Investors are advised to be cautious about short-term fluctuations due to high volatility and not to make decisions without professional advice.