After outperforming Bitcoin and most assets in November, Ethereum[1] seems to have taken the southbound road. The top altcoin even after the recent selloffs maintained above the crucial $3955 level. However, it lost over 10% in the last four days as Ethereum traded at $3,780.60 at the time of writing.
While the larger market didn’t anticipate Ethereum’s fall under the $3800 level after the alt’s price rose 7.5% in November to $4,631, reaching a market capitalization of $549 billion at the end of the month. So, could this be ETH’s fall from grace or just a dip-buying opportunity?
ETH’s MooNovember
Over the last month, 50-day and 200-day moving averages closed the month 19.7% and 7.4% higher than the previous month, at $4,268 and $3,153 respectively. While average daily USD volumes totaled $1.39 billion, up 11.5% compared to the month prior. Defi’s growth over the last month also helped ETH’s trajectory as Total Value Locked (TVL) in the Ethereum Network grew 8.68% in November to $78 billion.
Source: Crypto Compare
Further, average daily active addresses on the Ethereum network grew 5.30% in November to 624K, while new addresses also grew 10.8% to 139K, presenting a healthy growth in on-chain participation. Data [2]highlighted how Ethereum was deflationary for 8 days in November, as the network burnt a daily average of 12.1K ETH throughout the month, noting 23.5% monthly growth.
Source: Crypto Compare
If the network growth continues at a similar pace with new and existing participants flocking, the price could pull from the lower levels spoon enough.
However, with whale addresses depositing ETH to exchanges the current situation tilts towards the bearish side. Data [3]from whale alert highlighted that 29,300 ETH (worth $112,127,387) was transferred from an unknown wallet to FTX as ETH’s
