Ethereum’s Second-Worst November Signals Market Reset as Historical Pattern Reappears

Ethereum’s –22% November decline matches earlier cycle resets that cleared excess leverage and prepared the market for renewed upward movement after heavy selling.

Historical data shows that previous red Novembers removed weak positions, restored balance, and created conditions that later supported strong Ethereum recovery phases.

The latest downturn mirrors past structural resets, suggesting the market has completed another cleansing phase that often preceded new Ethereum trend advances.

Ethereum entered December after closing its second-worst November on record, posting a steep monthly decline of –22.38%. Historical patterns show that such deep pullbacks have repeatedly appeared before structural trend shifts in previous cycles.

Historical November Declines and Market Reset Structures

According to data referenced by Milk Road, Ethereum’s worst November occurred in 2018 with a sharp fall of –42.79%. That period erased enthusiasm across the market and left traders facing extreme selling pressure. The collapse removed exhausted participants and forced sellers from the ecosystem.

After that washout, Ethereum began forming the base that later supported a strong multi-year recovery. Once the liquidation phase ended, ETH advanced more than 10x during the subsequent cycle. The earlier breakdown acted as the clearing event that prepared conditions for renewed demand.

Milk Road noted this pattern as a recurring feature of deep November drawdowns. Each sharp monthly decline has come before a fresh market phase rather than a terminal downturn. The structure has repeated at moments when the broader market needed a reset in positioning.

2022 Selloff and the Rapid Recovery Phase

The trend appeared again in November 2022 following the FTX collapse. That event created widespread forced liquidation and removed excess leverage. Ethereum dropped –17.67% during that month, triggering another abrupt risk-off shift among traders.

With leveraged positions cleared, the market stabilized quickly. Ethereum doubled over the next 90 days, moving from around $1,100 to roughly $2,000. The rapid recovery suggested that the removal of stressed positions restored balance to the market.

Milk Road referenced that episode to show how deep selling phases can reset market conditions. The pattern has been consistent: forced liquidations have reduced pressure, allowing Ethereum to recover with renewed strength once the market reached equilibrium.

2025 November Decline Mirrors Previous Cycles

Ethereum’s latest –22% November drop reflects the same cleansing behavior observed in the 2018 and 2022 cycles. Traders faced rising liquidity stress and elevated leverage earlier in the year, creating conditions for a corrective phase. The decline removed short-term excess and pushed weak positions out of the market.

Market watchers noted that the structure aligns with earlier November resets. Excess leverage has now faded, and stressed participants have exited their positions. This mirrors previous cycle behavior and indicates that traders may be preparing for the next phase.

Milk Road summarized the sentiment by stating that this red November is not a cycle top but a reset before a new move. The pattern shows that Ethereum’s most intense November declines have historically preceded periods of renewed momentum.

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