# Ethereum Drops 7.5% as Macro Fears, DeFi Hacks Hit Crypto

**Published:** 2026-09-11T08:18:25.467Z  
**Topic:** Ethereum  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/8692af43-0b23-4056-b719-e8dbeed68b9d

Ethereum fell 7.5% to $3,610 on November 3, 2025, driven by Fed rate warnings, $1.14B in liquidations, and DeFi hacks. Watch $3,500 support.

Ethereum (ETH) dropped 7.5% on November 3, 2025, closing at $3,610 after trading as low as $3,579, as hawkish comments from the U.S. Federal Reserve Chair Jerome Powell and multiple DeFi hacks triggered a broader crypto market sell-off [1]. The decline pushed ETH 27% below its August high of $4,950, a steeper fall than Bitcoin's 15-16% drop from its peak [1].

| At a glance | |
|---|---|
| Price (Nov 3, 2025 close) | $3,610 [1] |
| 24h % Move | -7.5% [1] |
| Key Level | Below $3,500-$3,600 support [1] |
| Catalyst | Fed rate warning, DeFi hacks, $1.14B liquidations [1] |

## Price Action and Market Contagion
Ethereum's price started November 3, 2025, around $3,908, briefly peaking at $3,912 before a rapid decline to $3,579, ultimately closing near $3,610 [1]. This single-day fall was one of Ethereum's sharpest in months [1]. The broader crypto market also saw significant losses, with the total market capitalization shedding approximately $100 billion (3%) that day [1]. Bitcoin (BTC) fell below $106,000, its lowest in weeks, while Solana (SOL) dropped 10%, BNB 6%, and XRP 5% [1]. Overall, over $1.14 billion in long positions were liquidated across the crypto market, with Ethereum alone accounting for $85.6 million in liquidations within 24 hours [1].

## Macro and Network-Specific Catalysts
The primary driver for the market downturn was U.S. Federal Reserve Chair Jerome Powell's statement that another interest rate cut in December was "not a foregone conclusion" after October's small cut, coupled with warnings that high rates were pushing parts of the economy "into recession" [1]. These comments spurred traders to sell off risky assets, including cryptocurrencies [1].

Compounding the macro concerns were multiple security incidents within the Ethereum ecosystem. On the same day, the Balancer DeFi protocol was exploited for approximately $110 million, and the Berachain network, linked to Ethereum, halted operations for an emergency hard fork [1]. Stream Finance also reported a $93 million loss due to an external fund manager [1]. These incidents raised questions about Ethereum's security and stability among investors [1].

Despite the sell-off, large investors, often called whales, were observed buying the dip. In October, wallets holding 1,000–100,000 ETH added 1.64 million ETH, valued at approximately $6.4 billion [1]. However, some older holders sold portions of their ETH, as indicated by a fall in the Holder Accumulation Ratio from 31% to 30.4%, suggesting mixed investor sentiment [1]. Ethereum's staking participation continued to increase, with about 36.1 million ETH now locked, representing almost one-third of the total supply, which reduces available supply pressure [1]. Stablecoin transactions on Ethereum reached $2.82 trillion in October 2025, and U.S.-based ETH ETFs held over $300 billion in reserves by August, indicating strong network use and institutional backing [1].

| Technical Levels | |
|---|---|
| Support Zone 1 | $3,550–$3,600 [1] |
| Support Zone 2 | $3,300 [1] |
| Resistance Zone 1 | $3,800–$3,900 [1] |
| Resistance Zone 2 | $4,000–$4,100 [1] |

## What to watch
*   **Support Levels:** Monitor if Ethereum can hold above the $3,500–$3,600 support zone; a break below $3,300 could lead to a slide towards $3,000 [1].
*   **U.S. Jobs Report:** The November 7 U.S. jobs report could influence market sentiment, with weak data potentially lifting crypto and strong data potentially hurting it [1].
*   **"Fusaka" Upgrade:** Developer activity remains high, with work continuing on the "Fusaka" upgrade, set for December 2025, which aims to reduce transaction costs and boost speed [1].

The recent price drop reflects a confluence of macro risk-off sentiment and specific network security concerns, yet underlying network usage, staking growth, and institutional interest suggest continued long-term potential for Ethereum [1].

## Sources
1. Economictimes — [ethereum: Ethereum price falls 3%, drops below $3500 – what ...](https://economictimes.indiatimes.com/news/international/us/ethereum-price-falls-3-drops-below-3500-what-are-the-reasons-behind-the-fall/articleshow/125088363.cms)
2. Stocktwits — [Risk-Off Tape Hits Ethereum Harder Than Bitcoin As Crypto ...](https://stocktwits.com/news-articles/markets/cryptocurrency/ethereum-heavy-flush-in-liquidation-overtakes-bitcoin/cmUu7SnR49x)

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Cite as: TrendWatcher, "Ethereum Drops 7.5% as Macro Fears, DeFi Hacks Hit Crypto", https://www.trendwatcher.in/article/8692af43-0b23-4056-b719-e8dbeed68b9d