Tech losses spread to crypto after the midterms
CoinGecko figures cited by wallstreet-online showed Ether down about 7.7% over 24 hours. Nearly $175 million in Ethereum positions were forcibly liquidated, reversing the optimism of traders who had interpreted the previous day's rally as a potential breakout.
The broader market retreat was also steep. According to The Block, the Nasdaq lost 4.7% on Thursday, November 5, as technology and AI shares sold off. Bitcoin fell to about $75,700, while crypto liquidations approached $1.1 billion over 24 hours.
The selloff followed the November 3, 2026, US midterm elections, in which Democrats won control of both chambers of Congress. FXStreet and cryptoticker.io reported that market participants linked the tech rout and its spread to crypto to uncertainty about potential regulation of AI and crypto spending.
Chip stocks recorded particularly sharp losses. Cryptoticker.io, citing Yahoo Finance's live coverage, reported a decline of about 12% in the Philadelphia Stock Exchange semiconductor index, or SOX. Nvidia finished more than 10% lower, while AMD fell 15% during the session.
The liquidation wave affected 199,365 traders, according to CoinGlass data analyzed by ETHNews and cited by cryptoticker.io. The largest individual liquidation was a $10.94 million ETHUSDT position on Binance.
Support near $2,223 comes into focus
Ether's fall took it below $2,314, the threshold The Crypto Basic had identified as necessary to sustain an emerging breakout. Its analysts had previously flagged a buy signal in the moving average convergence divergence indicator, or MACD.
With that threshold breached, Wednesday's $2,223 low became the immediate support to watch. Wallstreet-online's analysis put the more consequential downside threshold at $2,170: a daily close below that level would invalidate the recovery's base.
The nearby 200-day moving average provided another reference point. CoinGecko daily data cited by cryptoticker.io placed it around $2,160 as of November 6, approximately 3% below the then-current price.
For a recovery, ETH would first need to regain $2,447, according to wallstreet-online. The October high of $2,524 was about 13% above the reported price. The 50-day moving average stood nearby at roughly $2,510, according to the CoinGecko data cited by cryptoticker.io.
ETF withdrawals preceded the price reversal
US spot Ether ETFs had already registered seven straight trading days of net withdrawals through November 3. SoSoValue figures cited by cryptoticker.io showed $85.35 million in outflows that day, including $74.44 million from BlackRock's ETHA. The funds collectively held $13.321 billion in assets under management.
Ether also weakened relative to Bitcoin during the selloff, with the ETH/BTC ratio at about 0.0294, cryptoticker.io reported. The outlet noted that Solana, Cardano and Uniswap likewise suffered larger declines than Bitcoin.
Pepeto's exchange remains in private testing
Wallstreet-online also presented the presale token Pepeto as an alternative to Ether. Its comparison rested on Ethereum's roughly $270 billion market capitalization and the source's assertion that a 10% increase would require almost $27 billion in fresh money.
PepetoSwap, the project's exchange, is operating in private testing for community members and major investors rather than as a broadly available service. The platform offers limit orders that execute at a selected price and dollar-cost averaging orders that buy a fixed amount on a regular schedule.
According to wallstreet-online, orders use a private relay by default to prevent bots from getting ahead of trades, while users retain their coins in their own wallets. Swaps are intended to carry a 0.00% fee.
The source reported that SolidProof examined and verified the code before the presale began. It listed the token's presale price at $0.000000188, with increases scheduled for subsequent stages.
