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Ethereum may reach $3,500 to $4,000 in November

Ethereum may reach $3,500 to $4,000 in November

GrafaGrafa2024/11/01 06:37
By:Isaac Francis

Analysts are projecting that Ethereum (CRYPTO:ETH) could potentially reach between $3,500 and $4,000 in November, driven by growth in decentralised finance (DeFi). 

However, this anticipated rally hinges on Ethereum breaking through its current resistance level of $2,736. 

Throughout October, Ethereum traded within a narrow range, finding support at $2,326. 

Victor Tan, founder and CEO of TrinityPad, indicated that advancements in Layer-2 solutions and the increasing integration of DeFi on the Ethereum platform could support this price movement. 

He stated, “ETH could advance toward $3,500-$4,000 by year-end if DeFi adoption continues expanding. Layer-2 technologies have already lowered transaction fees by around 20%, enhancing Ethereum’s appeal.” 

Despite this optimistic outlook, Ethereum's DeFi sector has underperformed recently, raising concerns about its price momentum. 

Data from DeFiLlama shows that Ethereum's total value locked (TVL) increased by only 2% over the past month, while competitors like Solana and Aptos saw TVL increases of 12% and 47%, respectively. 

This sluggish growth in TVL reflects a decrease in demand for Ethereum over the last month. 

Additionally, data from Artemis reveals that daily active addresses on the Ethereum network have dropped by 25%, leading to a 13% decline in daily transactions.

The reduced network activity has also lowered Ethereum's burn rate, resulting in an increase in its circulating supply. 

According to Ultrasoundmoney, approximately 38,598 ETH—valued at over $98 million—has been added to the circulating supply in the past month. 

The combination of rising supply and declining demand may exert downward pressure on Ethereum's price as November progresses. 

While there is potential for significant price movement if certain conditions are met, challenges remain that could impact Ethereum's performance in the near term.

At the time of reporting, the Ethereum price was $2,520.63.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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