​​Ether price slides as crypto market loses $1 trillion: key levels, risks and outlook​

​​​Ether update

​Over the past six weeks, the cryptocurrency market has undergone a dramatic reversal, with more than $1 trillion wiped from the sector’s value.

​Concerns about stretched tech valuations and uncertainty surrounding the trajectory of US interest rates have triggered a sweeping sell-off across speculative assets.

​According to data provider CoinGecko, the value of roughly 18,000 tracked tokens has fallen by 25 percent since their peak last month, erasing approximately $1.1 trillion in combined market capitalisation.

​Bitcoin has slid by a similar magnitude, shedding a quarter of its value and falling to its lowest level since April.

​Analysts note that losses among traders using large leveraged positions have accelerated the pace of the market’s decline, helping to turn what had been a powerful rally - fuelled in part by Donald Trump’s pledge to make the United States a global “bitcoin superpower” - into a stark retreat.

​Ether (ETH) has not escaped this downturn. In the past few weeks, it has struggled under the weight of broader market weakness and mounting risk aversion.

​Prices have fallen through important technical support levels, with recent declines taking ETH below the $3,100.00 mark.

​Some analysts highlight that Ether-based exchange-traded funds (ETFs) have suffered deeper cost-basis losses compared with their Bitcoin counterparts in recent weeks, suggesting the market currently views ETH as the riskier asset.

​Ether’s inability to break above resistance near $3,660.00 has further underscored this fragile backdrop, raising the possibility of additional declines if sentiment fails to improve.

​Liquidity conditions have also deteriorated. Both Bitcoin and Ether slid to multi-month lows during a recent period of thin weekend trading, as shifting expectations around Federal Reserve (Fed) policy again weighed on digital assets.

​At the same time, institutional behaviour has become increasingly important to understanding the market’s tone.

​Reports indicate that BitMine Immersion acquired roughly $173 million in Ether even as other market participants appeared to retreat, with the company’s chairman suggesting that at least one significant market-maker may be scaling back its crypto operations. If true, such a withdrawal would reduce liquidity further and make price swings more severe, even on relatively modest volumes.

​Despite these challenges, not all analysts have turned bearish. Some argue that if Ether can hold its current support levels, a rebound toward the $3,600.00 area remains possible.

​Still, given the decisively risk-off environment and ETH’s recent technical failures, downside risks persist.

​A continued deterioration in global risk sentiment - whether due to interest-rate concerns, ongoing selling in high-growth tech stocks or additional leveraged unwinding - could push Ether toward lower price zones that several strategists have identified as potential next stops.

​Ultimately, Ether’s short-term trajectory remains tightly linked to macroeconomic conditions and the broader retreat in speculative assets.

​While the long-term fundamentals of the Ethereum ecosystem - including staking, institutional engagement and network activity - remain supportive, those structural strengths have been overshadowed by the speed and scale of the current market correction.

​Until risk appetite stabilises and liquidity improves, Ether is likely to continue trading in the shadow of the trillion-dollar sell-off that has swept through the crypto world.

​​Ether bearish case:

​While Ether remains below its 10 November high at $3,658.13, the August-to-November downtrend remains intact.

​A sustained fall through the 4 November low at $3,060.29 may lead to the June high at $2,879.45 being reached.

​Ether bullish case:

​Were Ether to rise and close on a daily basis above its 16 November high at $3,247.21, a gradual advance towards the October-to-November resistance line and the August low at $3,352.94-to-$3,356.65 may ensue. This resistance area would need to be exceeded for the 200-day simple moving average (SMA) at $3,479.44 to be revisited, though.

Ether daily candlestick chart