Ethereum Faces 11% Drop Amid ETF Outflows and Macroeconomic Pressures

* Declining ETF demand and weak derivatives sentiment fueling an 11% weekly price drop. * Broader macroeconomic challenges, including a U.S. government shutdown, adding to investor uncertainty. Ethereum continues to face headwinds and is struggling to reclaim the $3,900 mark after its price decreased 11% over the past week. Multiple factors fuel this downturn, including muted demand for spot Ethereum exchange-traded funds (ETFs), waning sentiment in the derivatives market, and worsening macroeconomic conditions. On November 8, 2025, Cointelegraph reported that these interconnected challenges compound the cautious outlook for the cryptocurrency sector. The U.S. government shutdown, which began on October 1, 2025, is a key external pressure that has dented investor confidence. In a telling sign of this economic uncertainty, the University of Michigan’s consumer sentiment index hit its second-lowest level since 1978, reflecting the fiscal stalemate's far-reaching impact. Decreased network activity adds to Ethereum's struggles. Market research reveals a contraction in the total value locked (TVL) on the Ethereum blockchain. Additionally, revenue from decentralized applications (DApps) fell 18% in October. These declines in network engagement stifle Ethereum’s price momentum and reinforce bearish sentiment. Investors remain cautiously optimistic about Ethereum’s future, pointing to the upcoming “Fusaka” upgrade as a potential turning point. The update, scheduled for mainnet activation on December 3, 2025, promises to address key scalability and security challenges within the network. A successful upgrade could rekindle user interest and invigorate price movements heading into 2026. Amid the recent volatility, some signs of recovery have emerged. On November 7, 2025, Ethereum climbed 4.28% to trade at $3,468.11. Analysts suggest a possible rally, predicting the cryptocurrency could reach the $4,200 to $4,700 range by the end of November. This rally, however, depends on broader market stability and increased activity within Ethereum’s ecosystem. Nevertheless, caution persists, as the Fear & Greed Index remains firmly in “Extreme Fear” territory, underscoring widespread investor apprehension. According to CoinMarketCap on November 8, Ethereum (ETH) traded at $3,366.54 as of 17:08 UTC, marking a 2.13% gain over the past 24 hours.