Ethereum briefly slipped below $2,000 on Thursday 12 November, touching $1,983.82 before buyers stepped in, as US spot Ether exchange-traded funds continued to lose money and the wider crypto sell-off deepened. The second-largest cryptocurrency has now fallen about 16% in November and roughly 32% so far this year.

Ether recovered to trade around $2,013.57 later in the session, down 2.08% on the day, after opening at $2,056.35. The intraday low left it below its nearest technical resistance at $2,031.25, with the next support level on the daily chart at $1,875. The token has been making lower highs since a peak near $2,800 in late September, and earlier rebounds through October failed to regain that level.

ETF withdrawals near $700 million

Fund flows help explain the pressure. US spot Ethereum ETFs recorded $144.8 million in net withdrawals on 11 November, led by $129.8 million from BlackRock's ETHA fund, which accounted for almost 90% of the day's outflows. Adding the eight completed November sessions brings net withdrawals to $695.9 million, with only 4 November producing a positive result, of $53 million.

The funds have now lost money in seven of November's eight sessions, and their latest five-session withdrawal streak totals $523.9 million. Bitcoin funds are suffering the same drain: US spot Bitcoin ETFs recorded another $299.9 million in net outflows on 11 November, taking their five-session total to about $1.44 billion.

Hot inflation data set the tone

The trigger arrived a day earlier. A hotter-than-expected US inflation report published on 11 November lifted the chances of a further Federal Reserve rate rise above 90%, sparking a broad move away from riskier assets. Bitcoin touched $71,317 on Thursday, a price last seen in August, while the total value of the crypto market fell to $2.39 trillion from about $2.94 trillion in early October.

Leveraged traders felt the slide sharply. CoinGlass recorded liquidations affecting 125,731 traders over 24 hours, with positions worth about $727 million closed. Ethereum positions contributed $120.2 million of that total, with bets on higher prices accounting for 87.7% of the Ethereum liquidations.

Some large holders used the dip to buy. An on-chain wallet known as 7 Siblings bought more than 10,700 ETH during the fall, a position worth about $22 million. One trader described the $2,000 to $2,100 area as Ethereum's bull market line, arguing that holding it would confirm that the 2026 low is in, while a close below it would open the way to much lower prices.

What traders are watching next

The immediate question is whether $2,000 holds as support. Options market data points to a concentration of dealer hedging around $1,980, which could amplify moves if the price slides back towards that level. On the upside, liquidation heatmaps show clusters at $2,150 and $2,250 to $2,270, levels that would require gains of about 7% and 12% from Thursday's price.

For now, Ethereum remains below all four of its major weekly moving averages, and the funds that once bought it steadily are still selling. Until ETF flows turn, or the Federal Reserve outlook softens, traders expect the $2,000 level to be tested again. This article reports market movements; it is not investment advice.

Sources: crypto.news, Crypto Briefing