Ethereum News Today: Ethereum's Decline Mirrors Synchronized Crypto-Traditional Market Exodus

Ethereum fell below $3,000 on November 17, marking a 2.3% decline over 24 hours, as broader crypto markets grappled with their worst performance in months. The drop, which brought ETH to $2,978, mirrored Bitcoin's 3.21% slump to a six-month low of $91,545, signaling synchronized weakness across digital assets. The sell-off aligned with traditional markets, which saw the S&P 500 and Nasdaq close below key moving averages after their steepest drop in a month.

Technical indicators painted a bearish picture for Ethereum. The asset failed to hold above $3,200, breaking below critical moving averages and a key trend line on hourly charts. Analysts noted that further declines could target the $3,000 support level, with a potential slide to $2,880 if resistance at $3,280 fails. On-chain data from platforms like Glassnode highlighted stabilizing realized losses, suggesting short-term holders were capitulating, though long-term accumulation remains crucial for a sustainable recovery according to market data.

The selloff extended beyond price action. Crypto investment products recorded $2 billion in outflows last week, the largest since February 2025, according to CoinShares. Ethereum ETFs alone saw $689 million exit, representing 4% of assets under management. James Butterfill, CoinShares' head of research, attributed the exodus to macroeconomic uncertainty and aggressive selling by crypto whales. Meanwhile, Bitcoin ETFs faced even steeper outflows, totaling $1.38 billion, exacerbating market pessimism according to CoinShares data.

Institutional activity underscored the downturn. Ark Invest, however, took a contrarian approach, injecting $39.6 million into crypto-linked stocks like Bullish, Circle, and Bitmine as prices tumbled. The firm's purchases came as Circle and Bitmine shares dropped nearly 9%, reflecting a broader trend of bargain hunting amid volatility.

Macro factors compounded the pressure. The Empire State Manufacturing Index's 18.7 reading, up 8 points from October, reduced expectations for a Federal Reserve rate cut in December. Polymarket data now shows a 55% probability of no rate cut, while CME Group data points to a 60% chance of unchanged policy. Analysts warned that hawkish signals from central banks could prolong crypto's slump.

Ethereum's near-term outlook remains precarious. While the 200-day moving average at $2,550 offers historical support, the asset is trapped in a narrowing falling wedge pattern, suggesting potential for a sharp break lower. Timothy Peterson of investment firm Peterson & Co. noted that spot ether ETFs posted net outflows in four of the past five weeks, eroding confidence among long-term holders. Traders are now watching whether Ethereum can stabilize above $3,000 or face a test of $2,750 in the coming weeks.

The market's fragility was further highlighted by surging put volume in options markets, surpassing call volume for the first time in weeks. This shift indicates traders are hedging against further declines or betting on a drop, reflecting heightened risk-off sentiment according to market data.