Ethereum Slides Below $1,900, Underperforming Bitcoin
TREE NEWS reports: Ethereum (ETH) fell below the $1,900 mark on November 14, touching $1,889.24, as the second-largest cryptocurrency extends its weekly decline to over 15%. Over the same period, Bitcoin (BTC) dropped about 11.36%, marking a rare instance of ETH underperforming the market leader. The underperformance is more pronounced over four weeks, with ETH down 21.28% versus BTC’s 17.25% decline.
Spot ETF Outflows Add Pressure
The price weakness coincides with sustained outflows from U.S. spot Ethereum ETFs. On November 12, these funds recorded a net outflow of $70.5 million, the sixth consecutive day of negative flows. BlackRock’s ETHA led the exodus with $62 million in outflows. Data for November 13 remains incomplete, leaving uncertainty over whether the trend has reversed.
The persistent outflows suggest that institutional demand for ETH exposure via regulated vehicles is waning, at least in the short term. This contrasts with the earlier enthusiasm that greeted the launch of spot ETH ETFs, which had been expected to mirror Bitcoin’s ETF-driven rally. Instead, the flows have turned negative, amplifying selling pressure on the underlying asset.
Broader Market Headwinds
Ethereum’s decline is part of a wider crypto market pullback. Macroeconomic uncertainty, including elevated interest rates and a stronger dollar, has weighed on risk assets globally. Within crypto, the unwind of leveraged positions and a rotation away from altcoins have hit ETH particularly hard. The Ethereum network’s relatively high transaction fees and competition from faster, cheaper Layer-1 blockchains continue to pose structural challenges.
On-chain metrics show a decline in active addresses and total value locked (TVL) in Ethereum-based DeFi protocols, indicating reduced network activity. The upcoming network upgrades, while promising long-term scalability improvements, have yet to translate into a sustained price recovery.
Forward Outlook
Market participants are closely watching ETF flow data for signs of stabilization. A break below the $1,850 support level could trigger further downside, while a rebound above $2,000 would signal a potential recovery. The relative performance of ETH versus BTC will remain a key indicator of risk appetite within the crypto sector. For now, the trend favors caution, with investors awaiting clearer macroeconomic signals and a reversal in ETF outflows before turning bullish on Ethereum.
