Ethereum (ETH) is stabilizing after a bruising two‑day slide that briefly pushed prices near $3,100 on Tuesday. As of publication, ETH trades around the mid‑$3,400s, clawing back part of the decline amid broader risk‑off sentiment across crypto and equities.
Key takeaways
- ETH is attempting a bounce after Tuesday’s flush below ~$3,100 amid a wave of forced deleveraging that wiped out $1B+ in crypto long positions across majors. [1]
- U.S. spot Ethereum ETFs posted ~$219.4M net outflows on Nov. 4, marking the fifth straight day of redemptions; Nov. 5 data has not yet been finalized at press time. [2]
- Macro keeps risk assets on edge: Fed Chair Powell signaled last week that a December rate cut is “far from” certain, while Fed Gov. Stephen Miran today argued policy is too restrictive, underscoring a divided Fed. [3]
- DeFi shock: A $100M+ exploit at Balancer earlier this week added to negative sentiment across Ethereum‑native markets. [4]
What happened to ETH on Nov 4–5
Another deleveraging wave. The latest leg lower in crypto began Tuesday, with Bitcoin briefly slipping below $100,000 and Ether tumbling toward $3,100. Data providers and market coverage pegged aggregate crypto liquidations above $1B in 24 hours, with long positions bearing the brunt. The selling spilled over into Wednesday trade before buyers emerged. [5]
ETF flows turned south. According to Farside Investors’ daily dashboard, U.S. spot ETH ETFs saw ~$219.4M net outflows on Nov. 4, led by exits from the largest products. (Flows for Nov. 5 are typically posted later and were not yet available at press time.) Persistent ETF outflows have removed a key source of demand that helped fuel ETH’s summer rally. [6]
Macro cross‑currents. Rate‑sensitive assets remain choppy after Powell said a December cut isn’t assured, tempering hopes for quick easing. Today, Fed Governor Miran countered that policy looks too restrictive and said he would support a cut barring surprises—highlighting policy uncertainty that often magnifies crypto volatility. [7]
A DeFi confidence dent. On Monday, Ethereum‑based DEX Balancer suffered an exploit estimated at ~$128M, with on‑chain security firms and multiple outlets confirming losses across affected pools. While not the sole driver of price, the incident added to fragility across Ethereum‑native liquidity. [8]
Price levels to watch
- Immediate support:$3,100 (intraday tests on Tuesday; CoinDesk’s Daybook flags the level as pivotal). A decisive breakdown would leave $3,000 (psychological) in play. [9]
- Year‑to‑date line in the sand:~$3,330, which ETH revisited this week, effectively erasing 2025 gains before bouncing. [10]
- Near‑term resistance:$3,600–$3,700 (cluster of supply from late October/early November, frequently cited in recent technician notes). [11]
Context: Intraday on Wednesday, ETH traded around the mid‑$3,400s after printing an earlier low near $3,080 and a session high near $3,480, per real‑time quotes above. That range reflects the tug‑of‑war between forced sellers and dip buyers in the wake of Tuesday’s cascade.
Why ETH is moving: four forces
- Leverage reset – Excessive long positioning met thin order books, producing outsized wicks and >$1B in long liquidations across majors—typical of phase‑change selloffs. [12]
- ETF demand flipped – After robust summer inflows, ETH ETF redemptions (~$219M on Nov. 4) have weighed on spot markets and derivatives basis. [13]
- Macro uncertainty – Mixed Fed signaling (Powell cautious; Miran dovish) and a broader equity/tech wobble have dulled risk appetite, pressuring high‑beta assets such as crypto. [14]
- Idiosyncratic DeFi risk – The Balancer exploit injected fresh caution into Ethereum‑centric liquidity venues, nudging traders to reduce exposure. [15]
The broader market picture on Nov 5
Mainstream market coverage framed Wednesday as a continuation of this week’s crypto slump, with Barron’s highlighting sustained pressure across Bitcoin, Ethereum, Solana and XRP following October’s volatility spike. [16]
CoinDesk’s morning brief flagged $3,100 as ETH’s near‑term line‑in‑the‑sand and warned that further downside in BTC/ETH would likely hit altcoins harder due to thinner liquidity and skewed leverage. [17]
Short‑term outlook
- Base case (neutral‑to‑cautious): Consolidation between $3,100–$3,700 while the market gauges ETF flows and macro headlines. A daily close back above $3,600–$3,700 would suggest the worst of the washout is past. [18]
- Bull case: A positive ETF print (net inflows) for Nov. 5 coupled with calmer macro tone could squeeze shorts built below $3,400, opening $3,800–$4,000. (Monitor Farside’s update later today.) [19]
- Bear risk: Failure to hold $3,100 exposes $3,000 and, if liquidations re‑accelerate, a $2.7K–$2.8K probe flagged by some analysts. [20]
Frequently asked questions
Why is Ethereum down today?
A combination of forced deleveraging, ETF outflows, macro uncertainty on Fed policy, and a high‑profile DeFi exploit weighed on sentiment and liquidity. [21]
Are ETF flows the main driver?
They’re one of several catalysts. Farside shows a string of daily outflows into Nov. 4, which removes a structural bid—but leverage and macro still set the tone day‑to‑day. [22]
What’s the most important level now?
$3,100. Holding above keeps ETH in a stabilization phase; losing it risks another liquidation cascade toward $3,000. [23]
Methodology & sources (Nov 5, 2025)
Real‑time and end‑of‑day pricing cross‑checked with market dashboards and mainstream coverage; ETF flow figures sourced from Farside Investors; liquidation totals and market color from CoinDesk and CoinGlass‑tracked reports; macro context from WSJ and Reuters; DeFi exploit coverage from DLNews.
- Market wrap / selloff context: Barron’s. [24]
- Liquidations and key levels: CoinDesk. [25]
- ETF flows: Farside Investors ETH dashboard (daily). [26]
- Macro: WSJ (Powell remarks); Reuters (Fed Gov. Miran interview, Nov 5). [27]
- DeFi exploit: DLNews (Balancer ~$128M). [28]
Not financial advice. This article is for informational purposes only and should not be construed as investment, tax, or legal advice. Crypto assets are volatile and can lose value rapidly.
References
1. www.coindesk.com, 2. farside.co.uk, 3. www.wsj.com, 4. www.dlnews.com, 5. finance.yahoo.com, 6. farside.co.uk, 7. www.wsj.com, 8. www.dlnews.com, 9. www.coindesk.com, 10. www.tradingview.com, 11. u.today, 12. www.coindesk.com, 13. farside.co.uk, 14. www.wsj.com, 15. www.dlnews.com, 16. www.barrons.com, 17. www.coindesk.com, 18. u.today, 19. farside.co.uk, 20. www.coindesk.com, 21. www.coindesk.com, 22. farside.co.uk, 23. www.coindesk.com, 24. www.barrons.com, 25. www.coindesk.com, 26. farside.co.uk, 27. www.wsj.com, 28. www.dlnews.com
