On November 5, Ethereum’s total market value dropped below $400 billion, representing a notable setback for the world’s second-largest digital currency and moving it down to 36th place among major global assets, according to
Lookonchain
. This decline has been fueled by widespread forced sales, ETF withdrawals, and evolving institutional approaches, all pointing to a growing pessimism in the cryptocurrency sector.
The value of
Ethereum
(ETH) slipped under $3,400, turning negative for 2025 after beginning the year near $3,353, as reported by
a BeInCrypto report
. In the last day, crypto liquidations surpassed $1.1 billion, with Ethereum and
Bitcoin
(BTC) making up most of the forced sell-offs. Over 303,000 traders saw their positions closed, and $287 million in long bets were erased within just one hour, illustrating the rapid unwinding of leverage across trading platforms. Meanwhile, Bitcoin dropped to an intraday low of $100,721, approaching the key psychological threshold of $100,000.
The sell-off has intensified due to significant withdrawals from both Bitcoin and Ethereum ETFs. Last week, U.S. spot Bitcoin ETFs saw $1.15 billion in redemptions, with BlackRock’s IBIT alone accounting for $186.51 million in outflows on November 3, according to
a Crypto.News report
. Ethereum ETFs also experienced substantial withdrawals, led by BlackRock’s ETHA, which saw $81.7 million leave. Altogether, Ethereum ETF outflows have now topped $499 million, indicating waning institutional confidence.
Experts attribute the downturn to broader economic pressures and unclear regulations. The Federal Reserve’s recent message that further rate cuts are not assured has boosted the U.S. dollar and reduced demand for cryptocurrencies, as noted by
a CoinPedia article
. At the same time, both individual and institutional investors are moving toward safer investments, with Bitcoin’s market share rising to 60.15% as alternative coins suffer sharper losses.
Solana
(SOL),
BNB
, and
XRP
each dropped by more than 4% in just one day.
Institutional decisions are adding to the downward pressure on Ethereum’s market value.
BlackRock
and Securitize have spread their tokenized fund BUIDL across multiple blockchains, such as
Aptos
, Polygon, and Avalanche, slashing Ethereum’s portion of the fund by 60%, according to
The Defiant
. This move, which reduced Ethereum holdings from $2.4 billion to $990 million, highlights a growing trend of blockchain diversification among major institutions.
Technical signals also point to continued weakness. Open interest in Ethereum futures has dropped to $44.72 billion from a high of $63 billion in October, and the OI-weighted funding rate remains close to oversold territory, according to
an FXStreet forecast
. Analysts caution that if Bitcoin falls below $106,000, it could trigger an additional $6 billion in liquidations.
The downturn has led to bleak forecasts from market watchers. Crypto analyst Ali Martinez warns that Ethereum could fall as low as $1,700 by mid-2026 if it fails to recover crucial support, as covered by
Yahoo Finance
. Nevertheless, Ethereum’s 30% gain over the past year stands in contrast to its recent setbacks.
The overall crypto market is now at a pivotal point. With more than $1.37 billion in liquidations in the last 24 hours and ongoing ETF outflows, the outlook for a rebound remains unclear, as highlighted by Crypto.News. For Ethereum, the main challenge will be to attract buyers again in an environment increasingly shaped by regulatory challenges and macroeconomic pressures.
