Circle stock price has been in a strong freefall in the past few months, a situation that accelerated after it published its second quarterly results as a publicly traded company. It plunged to a low of $86, down sharply from its all-time high of $300. This plunge has brought its market cap to $19.9 billion, down from a record high of $60 billion.

Circle stock crashed after earnings

Circle stock price has been under pressure in the past few months as the momentum it had after going public faded. The crash continued after it published its financial results, which showed that its business was doing well but slowing. 

These numbers showed that the USDC supply ended the quarter at $73.7 billion, up by 108% from the same period last year. This figure has now grown to over $75 billion.

Circle’s revenue came in at $740 million, up by 66% YoY, while its net income jumped by 202% to $214 million. This makes it a highly profitable company.

One of the main news after its earnings report was that the company was about to launch the mainnet for its Arc layer-1 solution. It has already attracted over 100 companies, including popular brands like Aave to the testnet. 

The company also plans to launch the Arc token on its network. This is a major news as it could unlock millions or even billions in value depending on its performance. Some popular layer-1 networks like Ethereum and Solana have achieved multi-billion dollar valuations over time. 

Circle has also continued to expand its payment network business. Circle Payment Network (CPN) aims to leverage the stablecoin technology to supercharge transaction speeds and lower the cost.

Why CRCL stock dropped after earnings

Circle stock price crashed after earnings for several reasons. First, there are concerns that the USDC growth has stalled as the market cap has remained at $75 billion in the past few weeks. Artemis data shows that the transaction volume has dropped in the last 30 days. 

The other main risk is that analysts are predicting more interest rates by the Federal Reserve. Data on Polymarket shows that the odds of a cut in December have jumped to 75%.

Rate cuts will accelerate next year when Donald Trump appoints the replacement to Jerome Powell. All people who have been mentioned as potential successors have hinted that they will cut rates. This is notable for Circle as the company makes most of its money from interest. 

Finally, Circle’s lockup expiry is coming up in December, allowing insiders to sell their shares. Stocks normally drop when there is a lock-up expiration as there are concerns that insiders will dump their shares. 

Circle share price technical analysis

The daily chart shows that the stock has been in a strong downtrend in the past few months. It has crashed from a high of $299 to the current $86.

The stock has moved below $108, invalidating the double-bottom that was forming. It has moved below all moving averages, while all oscillators have pointed downwards. 

Therefore, the most likely scenario is where the CRCL stock continues falling as sellers target the key support at $80. A move above the resistance at $108 will invalidate the bearish outlook.

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The XRP price remained under pressure on Friday, mirroring the performance of Bitcoin and other assets. Ripple dropped for four consecutive days, reaching its lowest level since November 10. It dropped even as the spot XRP ETF launched in the United States.

Canary XRP ETF had a strong debut

The XRP price remains in a deep bear market after plunging by almost 40% from its highest level this year. This decline happened even as the Securities and Exchange Commission (SEC) approved the Canary XRP ETF (XRPC).

The XRPC ETF had a strong debut, with the first-day volume of over $58 million. It also attracted millions of dollars in inflows as Wall Street placed a bet in the fourth-biggest coin in the crypto industry.

Most importantly, more XRP ETFs will be launched in the coming weeks now that many of them have been listed on the DTCC platform. This includes ETFs by companies like Bitwise, Franklin Templeton, Invesco, and 21Shares. 

Why XRP price dropped after the ETF launch

The XRP price remained on edge for a few reasons. First, the decline was in line with the performance of the crypto market crash that saw Bitcoin and most altcoins plunge. 

Bitcoin price plunged to $97,200, while Ethereum plunged by 10% in the last 24 hours to $3,125. Other top tokens like Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA). The total market cap of all coins dropped by over 5.4% in the last 24 hours to $3.26 trillion, meaning that investors have lost over $1 trillion this year.

The XRP price is crashing as a sense of fear prevails in the market. Data shows that the Crypto Fear and Greed Index has moved downwards to the fear zone of 22. The state of fear is demonstrated in the performance in the futures market.

Data shows that XRP’s futures open interest dropped to $3.65 billion, down from the year-to-date high of over $10 billion. Falling open interest is a sign that investors are using less leverage to bet on the coin. Historically, cryptocurrencies do well when the open interest is rising.

Another sign is the performance of the futures funding rate, which has remained flat in the past few weeks. It even moved downwards below zero on Friday. 

A falling funding rate is normally a sign that investors in the futures market expect the token future price to be lower than the spot one. All this is happening because of the giant liquidation that happened on October 11 when tokens worth over $610 million were wiped out.

Ripple price death cross pattern 

Technicals have contributed to the ongoing XRP price crash that has pushed it from a high of $3.66 in July to the current $2.29. It has continued to form a series of lower lows and lower highs as the downtrend continued.

Ripple price has now formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages have crossed each other. 

The token remains below the Supertrend indicator and the Ichimoku cloud. Therefore, technicals suggest that the XRP price will continue falling as sellers target the next key support level at $2, which is much lower than the current level. A move above the resistance at $2.5 will invalidate the bearish outlook.

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The Nikkei 225 Index wavered this week as some of its biggest constituents published their earnings and as the Japanese yen continued its recent freefall. It was trading at ¥50,435, a few points lower than the year-to-date high of ¥52,640. It has jumped by 63% from its lowest level this year.

Japanese companies are reporting strong earnings

The Nikkei 225 Index wavered even as tens of its top constituent companies released their numbers. Most of these firms published numbers that were much better than expected. 

For example, Softbank reported revenues of ¥1.92 trillion, higher than the consensus estimate of ¥1.87 trillion. Similarly, Sony, the giant entertainment company, made ¥3.11 trillion, higher than the median estimate of ¥3.02 trillion. 

Other top Nikkei 225 Index companies that released their earnings reports were Bridgestone, Inpex, Rakuten, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial. Together, the three banks control over 80% of the market share n the country.

Nikkei 225 and Topix Index companies have published strong numbers for three main reasons. First, the weaker Japanese yen has helped companies sell products abroad and those in the hospitality industry.

Second, companies have benefited from the recent deal between the United States and Japan that lowered tariffs to 15%. This tariff figure was much lower than what analysts were expecting. Some companies like Hitachi have announced a price increase to cover tariffs. 

Additionally, many companies have benefited from the ongoing artificial intelligence wave. For example, Softbank exited its Nvidia investment this week at a big profit, with a company like Yaskawa Electric soaring by 19% after its results.  

On top of announcing revenue and earnings beats, many Japanese companies have revised their forward earnings higher. 

Meanwhile, the political environment is supportive of the corporate sector in Japan. Sanae Takaichi, the new prime minister, has already called for more stimulus to supercharge the economy. She also supports a lower interest rate, though it is unclear whether that will influence the Bank of Japan (BoJ).

Looking ahead, the next important catalyst for the Nikkei 225 Index and Topix will be the BoJ. Analysts anticipate that the bank will deliver another rate hike. This explains why Japan’s bond yield rose to 1.7%.

Nikkei 225 Index technical analysis

The daily timeframe chart shows that the Nikkei 225 Index has been in a strong uptrend in the past few months. It jumped from a low of ¥30,808 in April to ¥50,468 today. 

The index has recently pulled back and moved to the ultimate resistance level of the Murrey Math Lines tool. It remains above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control.

The Nikkei 225 Index is also above the Ichimoku Cloud and the Supertrend indicators. Therefore, the most likely scenario is where the index resumes the uptrend and moves to the extreme overshoot level of the Murrey Math lines at ¥53,125. 

A move below the support at ¥48,437 will invalidate the bullish forecast. Such a move lower is also possible because of the investor fatigue, such as the one Bank of America warned about

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Bitcoin price continued its strong sell-off today, Nov. 14, its lowest level since May 8. BTC token moved to a low of $97,200, down sharply from the all-time high. This article explores the top reasons why the BTC price is crashing.

Bitcoin price crashing as ETF outflows rise

One reason why Bitcoin price is in a strong sell-off is that American investors have been selling their ETF holdings. Data compiled by SoSoValue shows that ETF outflows jumped to $869 million on Thursday after shedding $277 million a day earlier. 

The cumulative ETF outflows this week stood at $622 million, lower than last week’s $1.25 billion and the previous week’s $798 million. This is a sign that many investors expect the price of Bitcoin to continue falling in the near term.

Large investors are selling BTC

Bitcoin price is also crashing as many big holders sell their coins. One reason for this is that these investors have lost their patience as the coin has continued to underperform the broader market. These investor have sold tokens worth over $45 billion in the past few months.

While Bitcoin is up by 10% this year, a similar investment in top indices like the Nasdaq 100 and S&P 500 would have generated a stronger return as these have jumped by over 20%. In a recent statement, a Bitfinex analyst said:

“The takeaway is that whales are not dumping in fear but gradually taking profits into a softer ETF demand environment. These rebalancing periods typically reset positioning and volatility before the next leg higher, once inflows and liquidity conditions improve.”

Bitcoin treasury trade falters

The other main reason for the ongoing Bitcoin price crash is that the Bitcoin treasury trade is faltering. Data shows that most companies that added Bitcoin to their treasuries are struggling. 

Michael Saylor’s Strategy stock price has plummeted by over 50% from its highest level this year. Its market net asset value (mNAV) has plunged to near 1, meaning that investors are not willing to pay a premium. 

Other companies like Semler Scientific, MetaPlanet, and KindlyMD have also lost their premium. The impact of all this is that these companies have largely paused their Bitcoin purchases. Some may even start selling soon to pay back their loans. 

Futures open interest continues to plunge

Meanwhile, there are signs that investors are still shaken by last month’s liquidation, that cost investors billions of dollars. The main evidence for this is that the open interest has plunged to $66 billion, down sharply from the year-to-date high of over $94 billion. 

Fallen open interest is a sign that investors anticipate the price to be much lower than where it is in the future. In most cases, crypto prices do well when the open interest is rising. 

Bitcoin price technicals have contributed

Technicals on the daily and weekly chart have contributed to the ongoing Bitcoin price crash. The daily timeframe chart shows that the BTC price has formed a double-top pattern at $125,137 and a neckline at $107,028.

Worse, the coin is about to form a death cross pattern as the spread between the 50-day and 200-day Exponential Moving Averages (EMA) near their crossover. 

The Average Directional Index (ADX) has continued rising, a sign that the trend is strengthening. Therefore, the most likely scenario is where Bitcoin price continues falling, potentially to the support level at $90,000. 

Bitcoin has also formed more bearish patterns on the weekly chart. For example, it has formed a giant rising wedge pattern, which is made up of two ascending and converging trendlines. 

Read More: Crypto crash today: why are altcoins like Uniswap, WLFI, Pepe Coin going down?

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The crypto market crash intensified on Friday, Nov. 14, with Bitcoin and most altcoins leading the way. Altcoins like Story (IP), Aerodrome Finance (AERO), Jupiter (JUP), and Pudgy Penguins (PENGU) are the top laggards. So, will crypto go back up following this crash?

Why the crypto crash is happening

The crypto market crash is happening for several reasons. The most notable one is that investors are coming to terms with the $20 billion liquidation that happened on October 11 after Donald Trump announced a 130% tariff on Chinese goods. Over 1.6 million traders were liquidated. 

Since then, many investors have remained in the sidelines and many more have stopped using leverage completely after observing the risks involved. Additionally, many investors have opted to stop it altogether, which is evidenced by the falling futures open interest, which has moved to the lowest level in months.

The rising risk has led to increased fear among investors, with the Crypto Fear and Greed Index moving downwards to 25. Crypto prices normally fall when there is fear in the market.

Additionally, the crypto market crash is because Bitcoin price has formed numerous bearish chart patterns, including a death cross and s double-top on the daily chart. It also formed a rising wedge pattern on the weekly chart, pointing to more downside in the near term.

The crypto market crash also happened as demand from American investors. Data shows that Bitcoin and Ethereum ETFs have shed billions of dollars in assets in the past few months.

READ MORE: Here’s why the XRP price is crashing as XRPC ETF inflows soar

Will crypto go back up?

History suggests that the crypto market crash will end and trigger more gains in the coming weeks or months.

For one, while this correction is painful, it is not the worst thing that happens in the past 16 years. The Bitcoin price has dropped by 22% from its highest level this month.

Historically, the coin has had steeper dives than that. For example, Bitcoin price dropped by 31% from its highest level in January to its lowest point in April.

Before that, the coin crashed by 35% from its highest level in March and its lowest level in August last year. Its other big bear market was in January 2024, when it dropped by over 20% within weeks.

In all these scenarios, Bitcoin has always bounced back and moved to a record high. This is in line with what a report by Bitfinex said:

“The takeaway is that whales are not dumping in fear but gradually taking profits into a softer ETF demand environment — a pattern observed repeatedly in prior cycles. These rebalancing periods typically reset positioning and volatility before the next leg higher, once inflows and liquidity conditions improve.”

Catalysts for the crypto market 

There are potential catalysts that will drive the crypto market higher in the coming months. 

First, the ongoing crash has brought the valuations of most tokens much lower in the past few weeks. With many of them being highly oversold, there is a likelihood that investors will start to buy the dip soon.

Second, the Federal Reserve will maintain a dovish tone in the coming months, especially when Donald Trump replaces Jerome Powell as the Federal Reserve chair. The mentioned candidates, like Rick Rieder and Kevin Hassett, have all hinted that they support low interest rates. Crypto prices tend to do well when the Fed is cutting rates.

Third, the Securities and Exchange Commission has started approving spot altcoin ETFs, most of which have had strong inflows. Hedera ETF has attracted over $76 million in inflows, while Solana funds have gained over $370 million in assets.

As such, the ongoing divergence between inflows and price movement will likely end, with top coins rebounding.

READ MORE: Ethereum price prediction as death cross forms, ETF and staking outflows rise

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The Dow Jones Index has pulled back in the past few days, moving from the year-to-date high of $48,416 to the current $47,457. It has remained about 30% above its lowest level this year. So, is it safe to buy the DIA ETF dip?

Why the Dow Jones Index has retreated

The Dow Jones and the DIA ETF have pulled back in the past few days as concerns about the Federal Reserve remained. One of these concerns is that the Federal Reserve will not cut interest rates in the coming meeting as some analysts were expecting. 

Data compiled by Polymarket shows that odds of a rate cut have dropped sharply in the past few days. These odds have dropped to 53% from the year-to-date high of 95%. 

Some Federal Reserve officials have warned that it was unwise to cut rates aggressively now that inflation remains at an elevated level. Their argument is that inflation has remained above the Federal Reserve’s target of 2.0% in the last four years, and more cuts will lead to higher prices.

The Dow Jones Index also retreated as investors sold the news of the end of the government shutdown. Donald Trump signed the bill on Thursday, ending the longest shutdown in history. 

The Dow Jones and other indices rose ahead of the end of the government shutdown. Now, the index is falling as investors sell the news.

Fears of an AI bubble ahead of Nvidia earnings

The Dow Jones Index is pulling back as investors remain concerned about the artificial intelligence (AI) industry. One concern is that companies in the index are highly overvalued as the boom continues. 

At the same time, there are concerns that the ongoing AI investments will not generate returns in the near term. A good example of this is OpenAI, a company expected to make an annualized revenue of $20 billion this year. Despite making huge losses, the company has made deals worth over $1.6 trillion. Analysts doubt whether the company will achieve a positive return on investment (ROI) anytime soon. 

The next important catalyst for the Dow Jones Index will be the upcoming Nvidia earnings. Analysts expect the report to show that its revenue rose by 56% to $55 billion in the third quarter. Its annual revenue is expected to be $207 billion, up by about 58% from last year. 

The other Dow Jones constituents that will publish their results next week are Walmart and Home Depot, the two biggest companies in the index.

Dow Jones Index forecast

The daily timeframe chart shows that the Dow Jones Index has been in a strong bull run in the past few months. It has formed an ascending channel and is slightly below its upper side. 

The Relative Strength Index (RSI) and the MACD indicators have moved sideways. It has remained above the 100-day Exponential Moving Average (EMA). 

Therefore, the index will likely resume the downtrend as sellers target the 100-day moving average level at $45,637. A move above this month’s high of $48,415 will invalidate the bearish outlook.

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The JPMorgan NASDAQ Equity Premium Income ETF (JEPQ) stock has done well this year and is now hovering near its all-time high, helped by the ongoing artificial intelligence boom.

While the JEPQ ETF stock has jumped by just 4.15% this year, its total return was 14.15%, higher than that of JEPI, which has returned 6.15%. This article explores whether this fund is a good buy.

What is the JEPQ ETF?

JEPQ is a top exchange-traded fund that gives investors exposure to technology companies, while providing them with high and regular dividends. 

The fund achieves this largely by using a strategy of buying all companies in the Nasdaq 100 Index. This includes companies like Nvidia, Apple, and Microsoft. By doing this, investors benefit as these stocks continue their strong rally.

At the same time, the ETF writes or sells call options on the Nasdaq 100 Index. Doing that provides it with income in form of the options premium, which it uses to distribute to investors. The fund also receives dividends from its portfolio companies. 

The main reason why investors have allocated $31 billion in the JEPQ ETF is that it has a 10% dividend yield, with the returns being distributed monthly. This yield is much higher than that of other ETFs that track the Nasdaq 100 indices like QQQ and QQQM, which pay less than 2%.

Income investors also allocate money on the fund as an alternative to the bond market. Data shows that the 10-year yield stands at 4.083%, while the 30-year and 2-year stood at 4.6% and 3.56%. As such, an investment in this fund provides more returns. 

JPMorgan NASDAQ Equity Premium Income ETF is riding the AI wave

The JEPQ ETF is hovering near the all-time high today as investors focus on the artificial intelligence wave. A closer look at the Nasdaq 100 constituents shows that most of them are in the AI industry. 

Micron stock price has jumped by 183% this year, while Palantir has soared by 150%. Lam Research is up by 118%, while AMD, KLA Corporation, Intel, CrowdStrike, Alphabet, and Broadcom have soared by over 50%. 

These companies are all benefiting from the increased investments in the AI industry. Precisely, they are seeing strong demand from OpenAI, which has reached deals worth over $1 trillion. 

Still, there is a lingering doubt on whether the AI boom will continue and whether the bubble will burst. Some investors have pointed to the circular nature of AI investments as all companies in the sector are related. Also, Softbank has offloaded its Nvidia shares. 

The JEPQ ETF is also benefiting from the actions from the Federal Reserve, which has started to cut interest rates. It slashed rates by 0.25% in September, and analysts expect it to slash again in December. 

Is JEPQ’s 10% dividend yield worth it?

JEPQ ETF and most covered call ETFs always sound too good to be true in that they give investors an exposure to an asset and a high dividend return. 

The reality, however, is that JEPQ ETF investors normally make less money than QQQ and QQQM investors. For example, the fund’s total return this year is 14%, while the QQQ has returned 22%.

This performance is because of how the options section of the fund is designed. In an options trade, there is usually a strike price and an expiry period. If the underlying index jumps, the strike price is hit, meaning that it does not participate in the rally. 

A closer look at all covered call ETFs like JEPI, QYLD, XYLD, and DIVO always lag behind their underlying assets. 

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The Schwab US Dividend ETF (SCHD) has underperformed the market this year. Its total return this year was 2.34%, much lower than the performance of the S&P 500 and Nasdaq 100 indices. This article explores why this ETF has underperformed and some of the top alternatives to buy.

Why the SCHD ETF has underperformed

The SCHD ETF has continued to underperform the market because of its composition, which is made up of traditional companies. Unlike other ETFs like QQQ and VOO, it has no major exposure to artificial intelligence, which has driven the stock market rally this year.

A closer look at the top gainers in the stock market this year has been companies like Micron Technology, Palantir, Lam Research, and KLA Corp that have jumped by over 80%.

Instead, the biggest constituent companies in the index are in the energy, consumer staples, health care, industrials, and finance. The top firms in the fund are the likes of Amgen, Cisco, AbbVie, Merck, Coca-Cola, and Chevron.

While these are all blue-chip companies, they have largely fallen out of favor with market participants in favor of the red-hot AI companies.

READ MORE: Here’s why the SCHD ETF is lagging and key catalysts to watch

Avantis International Small Cap Value ETF (AVDV)

The Avantis International Small Cap Value ETF is one of the best-performing ETFs this year and is a well-known brand for being highly uncorrelated from the broader market.

This fund finds its value by investing in over 1,500 companies from other countries other than the US and has over $13 billion in assets. It is an active fund that does not track any benchmark index.

The AVDV ETF has done well this year despite having no major exposure to the AI industry. Instead, most companies are in the industrials, materials, financials, and consumer discretionary sectors.

Most of its companies are from Japan, the UK, Canada, and Australia. Some of the top companies are companies that most people in the US have never heard of, including Mitsui Kinzoku, Marks and Spencer, Perseus Mining, Ocean Gold, and Regis Resources.

The firm AVDV ETF has had a total return of 40% this year, higher than SCHD’s 2.34%. It has also done better than funds tracking the S&P 500 and Nasdaq 100.

Fidelity High Dividend ETF (FDVV)

The Fidelity High Dividend ETF (FDVV) is a better ETF than the SCHD. Created by Fidelity, this fund invests in companies that have demonstrated a track record of paying dividends over the years.

Most of the companies in the fund are in the technology industry, followed by financials, consumer staples, utilities, and real estate. Some of the top names in the index are Nvidia, Microsoft, Apple, Broadcom, and JPMorgan.

This composition has helped it do well this year and beat the SCHD ETF. Its total return this year is 15.78%, much higher than SCHD’s 2.34%. It will likely continue doing well because of its composition.

Amplify Enhanced Dividend Income ETF (DIVO)

The Amplify Enhanced Dividend Income ETF is another dividend fund that is beating the SCHD this year.

DIVO uses a unique approach, where it invests in companies with a long track record of paying dividends and those with strong earnings growth.

The fund’s approach involves a tactical covered call strategy on each stock in the fund. A covered call is a situation where an investor buys an asset and then writes a call option on it, earning the premium.

The top companies in the DIVO ETF are firms like RTX, American Express, CME Group, JPMorgan, and IBM. Its total return this year is 17.20%, higher than that of SCHD and other top covered call ETFs like JEPI and JEPQ.

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A crypto crash that has cost investors billions of dollars is happening, with popular names like Uniswap, World Liberty Financial (WLFI), and Pepe (PEPE) falling by double digits from their highest levels this year. 

Uniswap price has plunged by 21% from its highest level this week, while WLFI has pared back some of the recent gains and fell by 15% from this week’s high. Pepe Coin price has plunged by about 65% from its highest level this year. The Bitcoin price has also dropped to nearly $100,000.

Crypto crash triggered by fear in the market

The primary reason why the crypto crash is happening is that investors are still fearful in the market. The closely-watched Crypto Fear and Greed Index has dropped to 25, a sign that it may move to the extreme fear zone soon. 

This is an important number that looks at the sentiment among traders in the crypto industry. It looks at the momentum in terms of prices, social media activity, performance in the derivatives market, and market composition among others.

The index was inspired by a similar gauge that was created by CNN Money many years ago. This index largely focuses on the stock market and looks at things like the stock breadth, strength, put and call options, volatility, and safe-haven demand. Even this index has moved to the fear zone of 34.

Cryptocurrency prices often underperform the market when the Fear and Greed Index is in the fear zone. 

There are a few reasons why there is fear in the market. For example, traders are still concerned about the recent liquidation event, where 1.6 million investors were wiped out. Over $20 billion disappeared in just a day.

The other reason for the fear is that the recent attempts to rebound are facing substantial resistance.

Use of leverage in the crypto industry is falling

The crypto market crash is also happening because of the ongoing retreat in open interest in the industry. Data compiled by CoinGlass shows that the futures open interest in the industry has dropped by 0.6% in the last 24 hours to $141 billion. This is a big drop considering that the interest stood at over $225 billion before the liquidation event in October. 

Uniswap’s open interest jumped to $782 million earlier this week after the developers announced major changes to its tokenomics. It then started moving downwards and currently stands at $575 million. 

Pepe, on the other hand, has seen its open interest plunge to $198 million, down from the year-to-date high of $1.02 billion. Donald Trump’s World Liberty Financial (WLFI) has seen its open interest tumble to $270 million from a record high of over $1 billion. 

Institutional demand waning

The crypto crash is also happening amid lagging demand for cryptocurrencies from institutional investors. This situation is being seen in two main areas: DAT and ETF. 

ETF inflows into popular coins like Bitcoin and Ethereum has largely stalled. For example, Bitcoin ETFs suffered a $1 billion outflow last week, bringing the cumulative figure to about $60.2 billion. Ethereum ETFs have lost over $2 billion in assets in the past few months. 

Meanwhile, demand from Digital Asset Treasury (DAT) companies like Strategy, Metaplanet, Trump Media, and Tron Inc. has all plunged. 

Looking ahead, there are two main catalysts that may drive the crypto market higher. The first one is that the SEC has started approving spot altcoin ETFs, some of which are seeing strong demand. This process will likely accelerate now that the government shutdown has ended. Also, the Federal Reserve is expected to continue cutting rates this year, a move that will benefit the industry.

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Ethereum price has crashed into a bear market after falling by 30% from its highest level this year. ETH was trading at $3,475, and has formed a risky pattern that points to more downside over time as institutional demand wanes.

Ethereum price has formed a death cross pattern 

The daily timeframe chart shows that the price of Ethereum has been in a strong downward trend in the past few months, moving from a high of $4,950 in August to $3,473 today.

Ethereum has now formed the highly bearish death cross pattern, which happens when the 50-day and 200-day Weighted Moving Averages (WMA) cross each other. This pattern often leads to more downside.

The coin has also formed a head-and-shoulders pattern with a slanted neckline. Most recently, it has formed a bearish flag pattern, which is made up of a vertical line and a channel.

Ethereum price has moved below the 38.2% Fibonacci Retracement level at $3,580. Moving below this level normally leads to more downside, potentially to the 50% and 61.8% retracement levels.

Therefore, the most likely Ethereum price forecast is bearish, with the next key support level being the psychological level at $3,000. A move above the death cross point at $3,800 will invalidate the bearish outlook.

ETH price chart | Source: TradingView

Why ETH price is falling 

There are a few fundamental reasons why Ethereum price is crashing today. First, its fundamentals are deteriorating, with data compiled by DeFi Llama showing that the total value locked (TVL) dropped by 16% in the last 30 days to $157 billion. The TVL is an important number that looks at the amount of money deployed in its smart contracts.

More data compiled by Nansen shows that the number of active addresses and transactions in Ethereum has plunged in the past few months. There were 45.2 million transactions in the network in the last 30 days, down by 23%. Its fees dropped by 42% to $27 million, while active addresses dropped to 8.2 million.

In contrast, other networks like Tron and BNB Chain are doing well, with their transactions rising by 38% and 35%, respectively in the last 30 days.

Ethereum price has also plunged because of the ongoing performance in the exchange-traded funds (ETF) market. Data shows that these funds have had $107 million in outflows this week after they shed $507 million last week.

BlackRock’s ETHA ETF is leading in terms of assets with $13.8 billion, while Grayscale’s ETHE has $3.38 billion.

Ethereum price has also crashed as treasury companies go through major challenges. Tom Lee’s BitMine stock price has plunged from $160 in July to $40 today, while SharpLink has dropped from $123 in May to $11 today.

The crash in Ethereum treasury stocks is a major blow to the coin as it means that they will acquire less tokens going forward.

Ethereum price is also falling as its open interest continues falling. It has plunged to $39 billion, down from $70 billion in August this year. This open interest has plunged after the large liquidation event that happened in October, when positions worth over $3.8 billion were liquidated within a day.

Ethereum’s weighted funding rate has continued to move sideways in the past few months, a sign that liquidity has largely dried in the past few months.

More data shows that investors are unstaking their Ethereum coins. According to StakingRewards, there was a net decrease of 5.2k ETH worth $18 million staked Ethereum in the last 30 days. A significant decline in the amount of staked Ethereum is a bearish sign as it means that investors are selling their tokens.

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