SAEDNEWS: After an 11% drop last week, Ethereum has failed to maintain the $3,400 level. $507 million flowed out of ETFs, a Balancer hack, and weak economic data have all weighed on the market, although a slight uptick in network activity still offers some signs of hope.
According to SaedNews’ cryptocurrency service, citing CryptoCurrency reports, Ethereum (ETH) has been unable to maintain the $3,400 level following an 11% drop last week and declining demand in both spot and derivatives markets. Experts believe that under current conditions, a return to $3,900 will be very challenging.
In November, U.S.-based Ethereum spot ETFs recorded over $507 million in net outflows. At the same time, the total value locked (TVL) on the Ethereum network has fallen to $74 billion, the lowest level since July.
Analysts note that concerns over slowing global economic growth, declines in tech stock markets, and weak earnings data from major companies have dampened sentiment in the cryptocurrency market. Additionally, a $120 million hack of the Balancer platform has further undermined investor confidence.
Nevertheless, some positive signs have emerged, including a 5% increase in active addresses in the first week of November and a modest rise in transaction volumes, indicating relative stability in Ethereum network activity.
Experts suggest that only a return of capital flows to ETFs and the successful implementation of the Fusaka update in early December could pave the way for a renewed push toward the $3,900 range.
