Ethereum’s market price has dropped below the $2,000 mark, reflecting a significant decline of approximately 6% within a 24-hour timeframe as the cryptocurrency sector faces substantial selling pressure, ongoing ETF withdrawals, and renewed concerns regarding the technology stock sector.
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As of Friday, November 13, Ethereum (ETH) was trading around $1,935, while Bitcoin had dipped below $70,000, based on data from crypto.news. These fluctuations are part of a broader trend, with the entire cryptocurrency market experiencing a decline of roughly 5.4%, further pushing ETH down alongside other leading digital currencies.
The downturn was exacerbated by investor hesitance following the resignation of Nvidia CEO Jensen Huang, which also affected technology stocks. Additionally, the liquidation of leveraged Ethereum positions contributed to the heavy price drops observed recently, with close to $250 million in liquidations taking place.
Factors Contributing to Ethereum’s Price Decline
Ethereum’s price drop appears to be part of a larger sell-off affecting various cryptocurrencies and tech investments. Bitcoin has faced a substantial decline of about 6.7% within the same time period, and several attempts to reclaim the $2,000 threshold for ETH have proven unsuccessful.
The declines in the market can be partly attributed to a reevaluation of technology stocks after Nvidia’s CEO stepped down, causing ripples through related companies involved in artificial intelligence infrastructure such as CoreWeave and Nebius. Although the stock market experienced its own downturn concurrently, it alone cannot account for the full extent of Ethereum’s decline.
The broader market context is also influenced by inflation concerns and the anticipated decisions from the Federal Reserve regarding interest rates, which have perpetuated selling pressure on major digital assets, with Bitcoin slipping under $70,000 and XRP nearing the $1 mark.
Significant Liquidations and ETF Withdrawals
Heavy losses for leveraged traders have been recorded as Ethereum struggled to maintain support above the $2,000 level. Data from CoinGlass indicates that approximately $249.8 million worth of Ethereum positions were liquidated within a single day, with long positions representing the majority at $225.9 million, while short positions accounted for $23.9 million.
Liquidations occur when trading positions are forcefully closed by exchanges due to insufficient collateral following losses, resulting in additional downward pressure on market prices. Simultaneously, the U.S. Spot Ethereum ETF has recorded net withdrawals amounting to $144.8 million on November 11, largely attributed to BlackRock’s ETHA fund which accounted for $129.8 million of those outflows. This trend follows a broader decrease in institutional interest, with over $695.9 million withdrawn from the ETF since early November.
Gramsterdam Upgrade Under Review
In parallel, Ethereum developers have opted to delay the activation of the Gramsterdam upgrade on the Foodi testnet, prompted by potential issues that could impact existing smart contracts. The Ethereum Foundation provided an update that developments included in EIP-8037 and EIP-8038 may lead to alterations in operations that influence transaction costs. Auditors have flagged several contracts that may require revisions before the upgrade can proceed safely.
The planned upgrade has faced scrutiny, and further discussions are slated for November 19 to assess audit outcomes and necessary changes before reactivating testing on the Hoody testnet.
Technical Analysis and Support Levels
Current market analysis indicates Ethereum is trading near $1,925, having touched a low of $1,917. The asset has demonstrated an inclination toward fluctuating highs and lows, with sellers remaining dominant below the $2,000 threshold.
Cryptocurrency analyst More Crypto Online noted that ETH has tapped into Fibonacci support at around $1,920, yet no indication of a confirmed bottom has emerged. “ETH is still plummeting and there are no signs of a low yet,” he stated on social media.
If Ethereum falls below the $1,920 support level, the next significant Fibonacci support level is expected at $1,832. Analyst Credible Crypto has indicated that the recent pullback alters his previous bullish outlook and anticipates a possible retreat towards the lower trading range, although a recovery might follow.
Despite his broader wave analysis suggesting $1,380 as a pivotal invalidation point, he does not foresee a swift drop to that level. Technical indicators reveal continued weakness: Ethereum’s daily relative strength index registered at 24.09, significantly under the oversold threshold of 30, with the MACD remaining negative.
Immediate support levels for Ethereum are identified near $1,900, followed by $1,850 and $1,750. A resurgence above $2,000 could pave the way for upward movement towards $2,020 and $2,100, but such a reversal would necessitate sustained buying interest to alter the existing downtrend.
Disclosure: This article does not represent investment advice. The content and materials published on this page aim to provide educational insights only.
