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. 2
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. 3
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. 4
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. 6
- Year‑to‑date line in the sand:~$3,330, which ETH revisited this week, effectively erasing 2025 gains before bouncing. 7
- Near‑term resistance:$3,600–$3,700 (cluster of supply from late October/early November, frequently cited in recent technician notes). 8
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. 1
- ETF demand flipped – After robust summer inflows, ETH ETF redemptions (~$219M on Nov. 4) have weighed on spot markets and derivatives basis. 2
- 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. 3
- Idiosyncratic DeFi risk – The Balancer exploit injected fresh caution into Ethereum‑centric liquidity venues, nudging traders to reduce exposure. 4
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. 9
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. 6
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. 8
- 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.) 2
- 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. 10
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. 1
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. 2
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. 6
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. 9
- Liquidations and key levels: CoinDesk. 6
- ETF flows: Farside Investors ETH dashboard (daily). 2
- Macro: WSJ (Powell remarks); Reuters (Fed Gov. Miran interview, Nov 5). 3
- DeFi exploit: DLNews (Balancer ~$128M). 4
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.
