|
Getting your Trinity Audio player ready...
|
- ETH fell 12%, with strong support at $3,200–$3,350.
- On-chain metrics and ETF outflows signal a cooling ecosystem.
- Fusaka Upgrade could spark growth if macro conditions improve.
Ethereum (ETH) has faced a challenging week, dropping roughly 12% after briefly climbing to $3,400. Market analysts suggest ETH may revisit the $3,200–$3,350 zone, where strong liquidity clusters exist, before attempting to push toward $3,500.
Macro Pressures Weigh on ETH
Global economic uncertainty has added pressure on Ethereum. Consumer sentiment in the U.S. is at a historic low, according to the University of Michigan, while disappointing earnings from consumer-focused companies have reinforced a risk-off mindset. Additionally, worries over high valuations in AI technology have further dampened investor enthusiasm.
Ethereum Ecosystem Metrics Signal a Slowdown
On-chain metrics highlight a cooling Ethereum network. Total value locked (TVL) dropped to $74.25 billion, a 24% fall in the past month and the lowest since July. The Balancer v2 hack, which saw $120 million stolen, exacerbated concerns.
Trading volumes also reflect caution, down 31.6% to $65.3 billion, while open interest fell 3.4% to $38.85 billion. Decentralized application (DApp) activity is declining too, with October figures falling 18% from September to $80.7 million, signaling slower staking rewards and network engagement.
ETF Demand and Institutional Flows Remain Tepid
Ethereum spot ETFs have seen net outflows of $507.83 million in November, and corporate treasuries have not added ETH to their holdings. With institutional interest muted, macroeconomic headwinds and weak derivatives data limit near-term upside.
Also Read: Ethereum’s Privacy Cluster: Building Web3’s Future on Trust and Digital Freedom
A positive note is the upcoming Fusaka Upgrade, scheduled for early December. The upgrade aims to improve scalability and security across the network, which could serve as a catalyst for renewed growth if accompanied by better macro conditions and renewed institutional buying.
Ethereum’s short-term outlook remains cautious. Support lies in the $3,200–$3,350 liquidity zone, while $3,500 is a potential upside target. Sustained growth depends on macro recovery, increased institutional participation, and stable on-chain activity. Without these, consolidation or lower support levels may dominate market action.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
