Ethereum fell Below $2,700 After Massive $1.5 Billion Institutional Withdrawal

Ethereum fell below $2,700 on November 20, 2025, dropping roughly 28% from its early November peak near $3,900. The cryptocurrency traded around $2,830 during the session, with intraday swings between $2,800 and $3,050 reflecting severe market volatility.

Institutional capital fled Ethereum ETFs at an unprecedented pace. Spot Ethereum ETF products saw over $1.5 billion in net outflows through mid-November. BlackRock’s ETHA recorded $421 million in withdrawals during a single week, while Grayscale’s ETHE shed another $121 million. The exodus marks one of the sharpest institutional retreats since Ethereum ETFs launched earlier in 2025.

The Numbers Behind Why Ethereum Fell

Ethereum fell from nearly $3,900 in early November to hovering around $2,800 now. That’s a 28% decline in less than three weeks.

Spot Ethereum ETFs have been bleeding money. Recent data shows over $1.5 billion flowed out of these institutional products. BlackRock’s ETHA alone saw a $421 million exit in just one week. Grayscale’s ETHE? Another $121 million gone.

This isn’t normal profit-taking. This is institutions hitting the panic button.

BitMine’s Billion-Dollar Problem

While everyone’s running away, one company doubled down. BitMine Immersion Technologies, the largest Ethereum treasury company, is now sitting on roughly $3.7 billion in unrealized losses.

Think about that for a second. They bought ETH at much higher prices, and now they’re watching their portfolio bleed. The company is down more than $1,000 per ETH token it holds.

Despite this, BitMine actually bought more. They picked up 21,054 ETH worth about $66.57 million on Tuesday night. Their chairman, Tom Lee, remains confident. He told CNBC the market is “pretty close” to bottoming.

I respect the conviction. But man, that’s a risky bet.

Understanding Why Ethereum Fell So Hard

So what’s driving this massive decline? It’s not just one thing.

First, macroeconomic pressure is real. Rising interest rates make risk assets like crypto less attractive. When you can get 5% on Treasury bonds, why gamble on volatile altcoins?

Second, Bitcoin is sucking up all the oxygen. Institutional money that does stay in crypto is flowing to BTC, not ETH. Bitcoin ETFs saw much smaller outflows comparatively. Some even posted gains while Ethereum fell.

Third, Digital Asset Treasury companies like BitMine have complex fee structures. These aren’t simple ETFs. They have layers of costs that eat into returns. Now that BlackRock might launch a staked Ethereum ETF with lower fees, investors are questioning why they’re paying premium prices.

The Technical Picture After Ethereum Fell

From a chart perspective, things aren’t pretty. Ethereum fell below the $3,000 psychological level for the first time since July. It briefly tested $2,800, which is a critical support zone.

Multiple analysts point to the Mayer Multiple dropping below 1. That’s the ratio of the current price to the 200-day moving average. Historically, when ETH trades below this level, it signals potential long-term bottoming. But there are no guarantees.

The RSI shows hidden bullish divergence, which some traders interpret as weakening seller momentum. But with $4 billion in open interest wiped out since October, the market structure is fragile.

What Long-Term Holders Are Doing

Here’s where it gets interesting. While institutions bail through ETFs, on-chain data tells a different story.

Wallets holding specific quantities of Ethereum, namely, between 1,000 and 100,000 ETH, increased their positions in October by adding 1.64 million ETH valued at around $6.4 billion at the current price of ETH.  

Ethereum staking also hit new highs. Stakers lock up their ETH for yield, around 3.9% to 4% annually. That’s a long-term commitment. These folks aren’t worried about short-term price swings.

The split is fascinating. Short-term institutional money runs scared, while long-term believers stack more coins.

Where Does Ethereum Go After It Fell This Much?

What’s Next for Ethereum?

Honestly? Nobody knows for certain. But we can speculate on scenarios. 

If ETF outflows don’t reverse and macro conditions worsen, some analysts see ETH potentially testing the low $2k’s by essentially having a deeper cut, upwards of 50% down from the November peak. 

If things stabilize, then the $3,000 could very well hold as support, and from there, you could potentially see it get back to the $3,500-$4,000 range, especially if the Fusaka upgrade, scheduled for December, creates positive momentum. 

The Fusaka upgrade is intended to improve scale and efficiency, which is part of Ethereum’s overall roadmap to handle larger numbers of transactions and lower costs. If this upgrade goes well, it could provide a real fundamental catalyst for a price recovery.

The Institutional Dilemma

What’s happening right now shows how sensitive institutional money is to market conditions. When things are good, ETFs flood in. When uncertainty hits, they vanish just as fast.

But Ethereum’s underlying network remains strong. Daily transactions are near record highs. Stablecoin transaction volume on Ethereum hit $2.82 trillion in October. The network is being used more than ever.

This creates a weird disconnect. The technology is thriving. The ecosystem is growing. But the price is tanking because sentiment shifted.

At the time of writing the article, ETH is trading at $2,691.2, after a gain of 1.01% in the past 24 hours.

My Take on Why Ethereum Fell

So, I’ll be straight here. This is a fairly substantial drop, and even for the longest-term hodler, the pain is real at this point if you bought it at or near its high. 

But I’ve been around this block before. Crypto moves in cycles. Fear is at its highest when it is experiencing a downward movement. Greed is at its highest when it is experiencing an upward movement. At this point in time, we are clearly in fear territory. The Fear & Greed Index shows “Extreme Fear” at an 11.

For long-term believers, this might be accumulation territory. For traders, the volatility creates opportunities. For institutions, it’s risk management in action.

What happens next depends on whether ETF outflows slow, whether macro conditions improve, and whether Ethereum’s technological upgrades deliver real value.

One thing’s certain though. Ethereum fell below $2,700 as a wake-up call. This market doesn’t care about your feelings or your portfolio. It moves on fundamentals, sentiment, and sometimes just raw fear.

Stay sharp out there.

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.

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