Ethereum’s price action has stirred up a whirlwind of commentary in the crypto community as the second-largest cryptocurrency has witnessed a sharp decline of nearly 20% throughout November. The price plummeted from a high of $3,900, testing the significant support level around $3,000 for the first time since July 15, 2025.
This recent downturn has been marked by a consistent daily downtrend characterized by lower highs and lower lows, prompting market watchers to scrutinize various technical indicators. Notably, the Mayer Multiple indicator, which tracks the ratio of ETH’s current price to its 200-day moving average, has dipped below 1. This is a critical threshold as a value under 1 typically signals that Ethereum is trading at a discount compared to its long-term average, often indicating a potential bottoming phase ahead.
In terms of liquidity, data from Hyblock Capital points to several key areas beneath the present market level that could lead to further downturns, with clusters forming around $2,904 to $2,916 and $2,760 to $2,772. The presence of these tight long-liquidation zones suggests that a sweeping downward move might precede a more stable price base. Historically, such liquidity resets have been precursors to consolidation phases lasting weeks rather than immediate breakdowns.
Predictions for a Rebound
Notably, Tom Lee, founder of FundStrat Global Advisors, has weighed in on the current market conditions, predicting that Ethereum is likely to reach its bottom this week. His analysis points to a favorable ratio of Ethereum’s price compared to its total value locked, suggesting around 50%. Furthermore, Lee highlights Ether’s relatively low performance compared to Bitcoin, interpreting it as a bullish signal for future price movements.
His long-term forecasts for Ethereum are ambitious, ranging from $12,000 to an astronomical $62,000, contingent upon various market scenarios. The higher target assumes Ethereum can successfully position itself as a leading global payment system, potentially catapulting its market capitalization to a staggering $7.45 trillion.
Technical Patterns Indicating Possible Gains
Analyzing Ethereum’s daily chart reveals a concerning but potentially bullish falling wedge pattern. This technical formation, characterized by descending and converging trendlines, is often indicative of an impending bullish breakout. Should it materialize, such a breakout could see ETH test the $4,000 price point again, which would signify an appreciable gain of approximately 28% from its current levels.
However, market participants should remain cautious, as the Relative Strength Index (RSI) is approaching oversold territory while the Percentage Price Oscillator continues its downward trend. Recent movements have pushed Ethereum below its 200-day Exponential Moving Average, and a drop under the $2,900 mark could invalidate the bullish outlook, opening the door to further downside potential.
Ethereum does, however, continue to dominate the market, holding a commanding 63% market share in the real-world asset tokenization arena, with over $11 billion in tokenized assets on its network. Major financial institutions such as BlackRock, Franklin Templeton, and Janus Henderson have all adopted Ethereum’s technology for their tokenization efforts.
In conclusion, while the short-term outlook for Ethereum appears volatile, the combination of technical analysis, liquidity insights, and expert forecasts paints a complex picture of potential recovery. As the market evolves, investors will be keenly watching for signals of stability or further decline.
