Ethereum Dips Below $3,000 — Extreme Fear Grips the Market as Bull Run Faces Headwinds.

Ethereum briefly fell below $3,000 for the first time since July, marking a four-month low and a 40% drop from its August all-time high of $4,946.05. The coin currently trades at $3,095.27, down 1.02% in 24 hours and 10.76% over the past week.

The ETH Fear and Greed Index has plummeted to 20, the lowest reading of 2025. Ethereum’s market capitalization now stands at $374.92 billion.

The decline reflects multiple pressures converging simultaneously. Bitcoin fell below $94,000, triggering widespread liquidations across the crypto sector. A $1.3 billion in leveraged positions total futures liquidations has exceeded $900 million in 24 hours, with $600 million in ETH long positions alone.

The 30-day ETH/BTC correlation remains high at 0.85, meaning Bitcoin’s 6% drawdown directly translated into steep Ethereum losses.

Ethereum Faces Heavy Institutional Outflows and Whale Selling Pressure

U.S. spot Ethereum institutional ETF outflows ETFs recorded $1.12 billion in cumulative net outflows since November 11. November 17 alone saw $272 million withdrawn, the third-largest single-day outflow on record.

By comparison, spot Bitcoin ETFs saw only $48 million in outflows the same day. The divergence underscores distinctly heavier selling pressure on Ethereum.

Meanwhile, large holders are actively distributing. Wallets holding more than 10,000 ETH moved approximately 230,000 ETH to exchanges in 48 hours, worth about $700 million. Exchange netflows flipped positive by 112,000 ETH over the past week, the largest weekly inflow since June.

An unknown whale dumped 31,005 ETH worth $92.19 million six hours ago, taking an $18.8 million loss in just two weeks. Prominent investor Arthur Hayes deposited 700 ETH to Kraken on November 17.

BlackRock deposited $280 million in BTC and $200 million in ETH to Coinbase recently.

Macro Headwinds Signal Ethereum’s Short-Term Weakness Amid Long-Term Bullish Outlook

The U.S. 10-year Treasury yield rose to 4.62%, the highest since February, after hotter-than-expected PPI data. December rate-cut expectations dropped sharply from 82% to 52%, according to CME FedWatch.

The Nasdaq 100 fell 2.1% in the same session, with growth and AI stocks leading declines. Japanese 30-year bond yields hit a 21-year high, accelerating the yen carry-trade unwind and contributing to global deleveraging.

On-chain activity confirms reduced demand. Daily active Ethereum addresses dropped to 412,000, the lowest since May. Median gas prices fell to 0.5 gwei, signaling reduced congestion and lower DeFi activity.

One analyst on X noted that ETH completed a major bearish move from the $4,000 breakdown level to the $3,000 zone, meeting the expected target from earlier breakdown structure.

Another trader on X pointed out that Ethereum’s recent 38% drop mirrors its 2020 crash, suggesting a fear-driven setup similar to what preceded its last major breakout.

Tom Lee, whose firm Bitmine bought 54,156 ETH worth $169 million last week, remains bullish. The firm now holds 3,559,879 ETH valued at $11.11 billion. Since mid-July, holdings exploded from 163,000 to 3.56 million ETH.

Lee cited stablecoins and Wall Street’s tokenization ambitions as key drivers. He stated that Ethereum will bottom before it rises.

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ETH Tests $3,100 Support as Death Cross and Oversold RSI Signal Continued Bearish Pressure

Ethereum lost the $3,050–$3,080 horizontal support that held since August. On November 16, the daily chart printed a death cross, with the 50-day SMA crossing below the 200-day SMA.

The ETH/BTC pair fell below 0.0300 and now trades near 0.0281, the lowest level since March.

The RSI sits at 37.40, in oversold territory below 40. The MACD remains deeply negative at -20.21, with the signal line at -214.75 and histogram at -194.54. No bullish convergence is visible yet.

Resistance levels stand at $3,500–$3,600 and $3,950–$4,000. Support levels are at $3,100–$3,160 and $2,950.

Volume appears elevated during recent declines, with moderate current volume suggesting potential exhaustion. The chart shows a descending channel from August through November with lower highs and lower lows.

Short-term traders face a $3,200 resistance barrier, while position traders should wait for confirmation above $3,600. The oversold RSI may indicate a potential bounce, but the deeply bearish MACD suggests caution. The current price trajectory remains bearish with high risk.