Crypto market crashed
Ethereum’s fall happened during a big sell-off in the whole crypto market. Bitcoin (BTC) went below $106,000, its lowest in weeks. The total crypto market cap lost about $100 billion (3%) that day. Other coins also fell — Solana dropped 10%, BNB 6%, and XRP 5%, as per the report by TechStock2. Traders moved money into safer assets, pushing Bitcoin’s dominance above 60%.
The main reason for the panic was a hawkish comment from U.S. Federal Reserve Chair Jerome Powell. He said another interest rate cut in December is “not a foregone conclusion” after October’s small cut. Powell also warned that high rates were pushing some parts of the economy “into recession”.His comments made traders nervous, and they started selling risky assets like crypto. So, the earlier optimism in the morning quickly turned into fear.
DeFi hack worsened Ethereum’s fall
On the same day, Ethereum’s own DeFi network suffered a huge hack. The Balancer DeFi protocol was exploited for about $110 million, and funds were moved to unknown wallets. The Berachain network, linked to Ethereum, halted operations and made an emergency hard fork to stop the damage. Another platform, Stream Finance, said it lost $93 million because of an external fund manager. These back-to-back incidents made investors question Ethereum’s security and stability.ALSO READ: Ethereum plunge as Crypto liquidations top $1.1 Billion — and Why Cardano can’t catch up
The crash led to a wave of forced sell-offs (liquidations) in crypto futures. Over $1.14 billion in long positions were wiped out across the market. Ethereum alone saw $85.6 million in long trades liquidated in 24 hours. Around 162,000 traders lost nearly $396 million that day. Analysts said these liquidations made the fall worse but could also mean the market was “clearing out weak positions”.Even with the chaos, big investors (called whales) were buying the dip. In October, wallets holding 1,000–100,000 ETH added 1.64 million ETH (~$6.4 billion worth). As per the report by TechStock2, Analyst Shawn Young (MEXC) said, “Recalibration into higher-beta assets is expected… Ether fits this positioning well,” explaining whale buying. However, some old holders sold part of their ETH as the Holder Accumulation Ratio fell from 31% to 30.4%. This showed mixed investor sentiment — whales buying, old holders selling.
Ethereum staking hit record highs
Over 36 million ETH is now staked, almost one-third of total supply. Staking means coins are locked and can’t be sold easily, reducing supply. Analysts at CryptoQuant said, “Ethereum’s all-time-high staking levels reveal its underlying strength… ETH is experiencing a structural supply reduction”. This supply squeeze could boost ETH’s price later if demand rises.
In October 2025, stablecoin transactions on Ethereum hit $2.82 trillion, showing very strong use. Daily transactions stayed near all-time highs. U.S.-based ETH ETFs held over $300 billion in reserves by August. Big firms like BlackRock were also adding ETH. This shows Ethereum is shifting from just speculation to a real financial network.
ETH started Nov. 3 around $3,908 and peaked at $3,912, then dropped fast to $3,579. It closed near $3,610, down 7.5% for the day. The fall pushed ETH 27% below its all-time high. Bitcoin only fell 15–16% from its top, showing Ethereum was hit harder. Traders watched if ETH could stay above $3,500–$3,600 support levels.
Chain reaction of bad news
Powell’s warning + DeFi hacks + liquidations = perfect storm for Ethereum. Fear spread fast, and social media was filled with crash warnings. Robert Kiyosaki, author of Rich Dad Poor Dad, tweeted, “MASSIVE CRASH BEGINNING, Millions will be wiped out. Protect yourself. Silver, gold, Bitcoin, Ethereum will protect you.”His post added to panic, even though many ignored it due to his past false alarms, as stated by TechStock2.
ETF investors also pulled out money — $1.15 billion in Bitcoin ETF outflows in late October. On crypto Twitter, traders joked that “Uptober” had turned into “Downvember”.
Bitcoin held up better
Bitcoin fell about 3–5%, while Ethereum dropped 6–7%. Investors moved money from altcoins to Bitcoin as a safe choice. Binance data showed ETH was down 4.4% to $3,734, BTC down 3.3% to $104,000. Solana, Dogecoin, and smaller coins fell even harder. This pattern shows that during panic, traders prefer Bitcoin over altcoins.
Ethereum’s staking participation keeps increasing — about 36.1 million ETH now locked. This means fewer ETH are available to sell, reducing supply pressure. Gas fees stayed very low (1–5 Gwei) during the sell-off, showing no panic on-chain. In October, more than $2.8 trillion moved on Ethereum — more than many countries’ GDP. Developer activity also stayed high, with work continuing on the “Fusaka” upgrade set for December 2025. Fusaka aims to cut transaction costs and boost speed, improving scalability.
Ethereum’s RSI (momentum indicator) dropped to 31, meaning it’s oversold and may rebound. Key supports, $3,550–$3,600, and then $3,300 if it falls lower. Resistance zones, $3,800–$3,900, then $4,000–$4,100 for a bullish comeback. Analysts say ETH might consolidate between $3,650–$3,850 before a rebound. But if it breaks below $3,300, it could slide toward $3,000. The Nov. 7 U.S. jobs report could change sentiment — weak data might lift crypto, strong data could hurt it.
Long-term outlook of Ethereum
Many experts stay bullish on Ethereum’s future despite the fall. Fundstrat’s Tom Lee predicts Bitcoin could hit $150K–$200K in 2025 and believes Ethereum will also grow fast. He said Ethereum is “getting closer to becoming the backbone of global markets”. CoinDCX forecast ETH could reach $4,600–$5,500 by late 2025 if the market stabilizes. Institutional money, ETFs, and staking yield could push ETH even higher.
Still, risks remain — competition from Solana and Cardano, high fees, and regulatory pressure. Analyst Shawn Young (MEXC) summed it up, “The macro structure appears constructive — the network continues to scale, transaction demand remains robust, and staking keeps absorbing supply pressure”. Ethereum’s long-term story stays strong — active network, big developer base, and real-world use.
On November 3, 2025, Ethereum’s drop below $3,500 was caused by a mix of global rate fears, DeFi hacks, and huge liquidations. The short term looks shaky, but the network’s usage, staking, and institutional backing show strong long-term potential. As one analyst said — this may just be a dip, not a downfall.
FAQs
Q1. Why did Ethereum price fall below $3,500 in November 2025?
Ethereum fell because of U.S. Fed rate worries, big DeFi hacks, and over $1 billion in crypto liquidations that hit trader confidence.
Q2. Will Ethereum recover after this price drop?
Experts say Ethereum may bounce back as staking, network use, and whale buying show long-term strength.