Eth Falls To 4-month Low Under $3k: Is The Bull Market Over?

ETH price fell below $3,000 for the first time since July. Cointelegraph explains what is required for a trend reversal.

ETH falls to a 4-month low despite recent layer-2 growth cutting base fees and boosting Ethereum’s use in tokenization and stablecoin.

ETH may recover as global risks ease and new liquidity enters markets, helping the price move back toward $3,900.

Ether (ETH) crashed below $3,000 on Monday, and the drop reflects a sector-wide risk-off shift where traders are worried that the bull run may have ended after a 40% correction from the $4,956 all-time high in August.

Ether’s performance has closely tracked the altcoin market, signaling a lack of asset-specific catalysts or at least traders’ shift toward broader macroeconomic factors. If Ether faced clear competitive pressure or weakening fundamentals, ETH would likely lag altcoins, which has not happened.

Analysts argue the crypto downturn stems from rising concern over global growth. The US government shutdown and new import tariffs were followed by weak consumer-sector earnings and doubts surrounding the artificial intelligence industry. Data centers now deal with higher costs and energy constraints, even as the business remains highly profitable.

Demand for bullish ETH leverage has stayed muted for a month, with the futures premium stuck under the 5% neutral level. Part of this hesitation comes from how market stress affects companies building ETH reserves, including Bitmine Immersion (BMNR US), SharpLink Gaming (SBET US) and The Ether Machine (ETHM US).

Those companies focused on ETH reserves through debt and equity issues now hold unrealized losses as their shares trade below net asset value, which includes crypto holdings. Even if no forced selling is imminent, investor interest in the sector drops, reducing demand for new debt and causing gradual dilution for current holders.

Ether’s weak onchain data has also hurt investors’ bullish appetite. Lower network activity reduces demand for ETH and lifts supply. Ethereum’s burn mechanism only becomes meaningful when demand for base layer data rises, so slower DApp usage is a net negative for ETH staking.

Deposits on the Ethereum network, measured by Total Value Locked (TVL), fell to a four-month low of $74 billion, a 13% drop from 30 days earlier. Activity on Ethereum decentralized exchanges (DEX) reached $17.4 billion in the past seven days, down 27% from the prior month. Ethereum remains the clear leader in deposits, but it faces

Source: CoinTelegraph