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After choppy price action, is there hope for Ethereum on the road ahead?


After outperforming Bitcoin and most assets in November, Ethereum appears to have taken the road heading south. The top altcoin even after recent selloffs held above the crucial $ 3,955 level. However, it lost more than 10% in the past four days as Ethereum was trading at $ 3,780.60 at the time of writing. .

While the larger market did not anticipate Ethereum falling below the $ 3,800 level after the alternative’s price surged 7.5% in November to $ 4,631, reaching a market capitalization of $ 549 billion in order to month. So could this be ETH’s fall from grace or just a buying opportunity?

MooNovember from ETH

During the last month, the moving averages of 50 and 200 days closed the month 19.7% and 7.4% more than the previous month, at $ 4,268 and $ 3,153 respectively. While the average daily volumes in USD totaled $ 1.39 billion, 11.5% more compared to the previous month. Defi’s growth over the past month also helped ETH’s trajectory, as the total locked value (TVL) on the Ethereum network grew 8.68% in November to $ 78 billion.

Additionally, 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 healthy growth in share on the chain. Data highlighted how Ethereum was deflationary for 8 days in November, as the network burned a daily average of 12.1K ETH throughout the month, noting a monthly growth of 23.5%.

Source: Crypto Compare

If the growth of the network continues at a similar rate with the influx of new and existing participants, the price could pull the tiers lower enough.

However, with whale addresses depositing ETH on exchanges, the current situation is tilting towards the bearish side. Data from the whale watch highlighted that 29,300 ETH (worth $ 112,127,387) were transferred from an unknown wallet to FTX as the price of ETH hovered around the $ 3700 mark.

But, a reversal could be at stake

Sanbase data highlights how the macro-uptrend remains intact, as the 10 largest Ethereum addresses on exchanges have a cumulative $ 3.82 million ETH, which is the lowest level since the exodus. Meanwhile, the 10 largest no-exchange addresses have a cumulative ETH of $ 24.78, approaching the ETH of $ 26.63 seen at the ATH level in June 2016, supporting the long-term bullish argument.

Source: Sanbase

Furthermore, it could be seen that active directions for ETH had held up well, while active deposits saw a drop. If active addresses rebound and the downward trend in active deposit continues, a recovery could be expected sooner.

Source: Sanbase

In particular, during the April price run, active ETH directions soared while active deposits fell, giving prices a push above the $ 2K level.

So while Ethereum is close to $ 3,700 it could be a good time to buy by dip as it has acted as long-term support, it will be best to wait for on-chain activity to pick up. A rise in the daily RSI, which has been in a downtrend, could also act as a good indicator for trade entry. In the short term, while asset volatility is expected, ETH could return soon enough.

This is a machine translation of our English version.




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