Why Has Ethereum (ETH) Experienced a Sharp 5.80% Decline Over the Past Month?

Jakarta, Pintu News – Ethereum (ETH) has fallen about 12% in the past week, despite rising to the $3,400 level. Analysis shows that there is a strong pool of liquidity between $3,200 and $3,350, which indicates that Ethereum (ETH) may return to that zone before attempting a rally towards $3,500.

This decline was influenced by several factors which include weak global economic conditions, cautious market sentiment, and decreased activity within the Ethereum (ETH) network itself.

Main Causes of Ethereum (ETH) Decline

Ethereum (ETH) is under pressure due to weak global economic indicators and rising risk-averse sentiment. Consumer-oriented companies reported disappointing quarterly results, and renewed concerns about high valuations in the field of artificial intelligence added to the pressure. The longest US government shutdown in history also continues to affect market sentiment.

A survey from the University of Michigan found that consumer sentiment expectations reached their lowest level since 1978. The decline was also influenced by a decrease in investor interest in US-listed Ethereum (ETH) ETF products. These products saw net outflows of around $507.83 million in November, and there were no major additions to Ethereum (ETH) holdings by large companies.

Also read: Bitcoin ETF’s Biggest Fund Withdrawal Since August, What Happened?

Impact on DeFi and On-Chain Metrics

On-chain metrics show that the ecosystem is cooling down. The total value locked (TVL) on the Ethereum (ETH) network dropped to around $74.256 billion, the lowest level since July, with a 24% drop in the last 30 days. One of the main triggers was the attack on Balancer v2, the leading DeFi platform, which lost $120 million on Monday.

Trading activity also showed caution. Volume, according to data from CoinGlass, fell 31.6% to around $65.3 billion while open interest fell 3.4% to around $38.85 billion. Ethereum’s (ETH) open interest-balanced funding rate stood at around 0.0073%, indicating a lack of bullish leverage.

Read also: JPMorgan Increases Investment in Bitcoin ETF, Potential Price to Reach $170,000?

Future Expectations and Challenges

Despite facing various challenges, Ethereum (ETH) has a possible positive catalyst coming. The Fusaka upgrade scheduled for early December is expected to provide important scalability and security improvements to the Ethereum (ETH) network. However, for a sustained rally, a combination of better macro conditions, ETF or treasury purchases, and steady on-chain growth is required.

Without those factors, the second-largest cryptocurrency by market capitalization might consolidate or visit lower support. Recent declines are supported by measurable weaknesses in ecosystem metrics and investor flows, not just market noise.

Conclusion

Ethereum’s (ETH) recent decline suggests that there are real weaknesses in the ecosystem and investor flows, not just regular market fluctuations. The presence of a defined liquidity cluster around $3,200-$3,350 provides a basis of support, and the $3,500 level remains a potential upside target.

However, Ethereum (ETH) still faces a series of obstacles, including global economic uncertainty and a decline in network activity that reduces investor confidence and generally slows momentum around the ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. What’s Behind Ethereum’s Drop: Macro TVL & DeFi Liquidity. Accessed on November 10, 2025
• Featured Image: Generated by AI