Ethereum Leads Altcoin Decline as Bitcoin Season Index Signals Market Shift

• The total crypto market saw a rapid $230 billion loss within 24 hours, erasing recent gains and entering fear territory.

• Ethereum dropped 12.15% to $3,166, breaking key support levels and leading altcoin declines.

• The Altcoin Season Index hit 23, the lowest since March 2025, signaling Bitcoin dominance and altcoin weakness, with altcoin market cap down $400 billion in two months.

Crypto market crash on November 4, 2025: $230B wiped out as Ethereum plunges 12%. Discover causes, impacts, and what traders should watch next. Stay informed on Bitcoin’s resilience amid altcoin turmoil.

What caused the crypto market crash on November 4, 2025?

The crypto market crash on November 4, 2025, was triggered by a sharp selloff that erased $230 billion from the total capitalization, reducing it from $3.55 trillion to $3.32 trillion in just 24 hours. This 6.5% decline accelerated as trading progressed, with Ethereum and other altcoins suffering steeper losses than Bitcoin. Sentiment indicators like the Crypto Fear and Greed Index plunged to 27, reflecting widespread panic after weeks of greed-driven rallies.

Why did Ethereum lead the altcoin decline during the crash?

Ethereum’s price fell 12.15% to $3,166 on November 4, 2025, outpacing Bitcoin’s 5.3% drop and exposing vulnerabilities in the altcoin sector. This marked the cryptocurrency’s worst single-day performance in months, as it broke below critical support at $3,600, according to technical analysis from platforms like TradingView. The decline triggered a market structure breakdown, with the LuxAlgo indicator confirming a “Break of Structure” that fueled further selling pressure.

Supporting data shows Ethereum testing $3,000 levels, a zone that, if breached, could lead to deeper corrections toward $2,800. Expert analysts, including those from CoinMarketCap, note that underwater holders added resistance, making recovery challenging. The broader altcoin market capitalization has shrunk by $400 billion since September 2025, from $1.8 trillion to $1.4 trillion, highlighting the sector’s fragility amid rotating capital flows toward Bitcoin.

Trading volume surged to $247 billion during the downturn, indicating capitulation rather than orderly profit-taking. This volume spike, combined with the rapid sentiment shift, underscores how overextended positions in altcoins unraveled under profit-taking and liquidation pressures.

Source: CoinMarketCap

The chart illustrates a steep downward trajectory for the overall market capitalization, with no immediate support in sight to halt the momentum.

Bitcoin, while also declining 5.3% to approximately $100,900, held above the $100,000 psychological barrier longer than expected, demonstrating relative strength. However, the altcoin rout overshadowed this, as Ethereum’s plunge pulled down correlated assets across the board.

Frequently Asked Questions

What does the Altcoin Season Index reading of 23 indicate for November 2025?

The Altcoin Season Index at 23 signals “Bitcoin Season,” where altcoins underperform Bitcoin significantly, marking the lowest level since March 2025. This reading, tracked by sources like CoinMarketCap, shows capital flowing away from riskier assets, confirming the end of altcoin rallies and increased market caution.

How quickly did the crypto market capitalization drop on November 4, 2025?

The total crypto market capitalization fell from $3.55 trillion to $3.32 trillion in under 24 hours on November 4, 2025, a swift 6.5% decline that unfolded rapidly during active trading sessions. This drop, as reported by market trackers, reflects heightened selling pressure and fear across exchanges.

Source: TradingView

Resistance levels have now formed at $3,400 to $3,600, where previous holders may offload positions, complicating any short-term rebound for Ethereum.

Key Takeaways

• Crypto Market Loss Scale: The market shed $230 billion in capitalization on November 4, 2025, dropping 6.5% from $3.55 trillion to $3.32 trillion, with the decline occurring rapidly over 24 hours.
• Altcoin Season Index Implications: A score of 23 denotes Bitcoin dominance, the lowest since March 2025, as altcoins lag, with their total cap falling $400 billion in two months.
• Trader Strategy Insight: Avoid altcoin bets until the index exceeds 50; focus on sentiment recovery to mitigate risks in the current fear-driven environment.

Source: CoinMarketCap

The index’s drop to 23 illustrates the stark performance gap, with altcoins facing a persistent downtrend visible over the past 90 days.

The Crypto Fear and Greed Index’s fall to 27 from recent highs in the 60s-80s highlights the abrupt sentiment reversal, now dominated by fear. Elevated trading volumes at $247 billion during the crash point to liquidations and capitulation, patterns often seen at market bottoms but not yet confirmed here.

For traders, the crypto market crash underscores the risks of altcoin exposure in Bitcoin-favoring conditions. Ethereum’s lead in the decline, driven by technical breakdowns and broader market rotation, suggests prolonged pressure until key supports hold or positive catalysts emerge.

Conclusion

The crypto market crash on November 4, 2025, delivered a stark reminder of volatility, with Ethereum’s sharp decline and the Altcoin Season Index at 23 signaling a shift back to Bitcoin strength. As fear grips the market and altcoins reel from $400 billion in losses over two months, investors should prioritize risk management and monitor sentiment indicators closely. Looking ahead, a stabilization above critical supports could pave the way for recovery, but traders must remain vigilant for further downside in this uncertain landscape.