• Ethereum declined 12% last week, currently trading at $3,419.46 with $30.65 billion 24-hour volume.
• ETH’s TVL dropped 24% to $74.256 billion, with DApp activity falling to $80.7M in October.
• VWAP support holds since April 7; next targets are $4,400 and $4,955 for potential breakout.

Ethereum (ETH) declined about 12% over the past week, despite briefly touching the $3,400 mark. Analysts observe strong liquidity clusters between $3,200 and $3,350, suggesting the token may revisit that range before attempting a rally toward $4,400. 

Currently, Ethereum is trading at $3,419.46, with trading volume over the past 24 hours reaching $30.65 billion, with a market cap of $412.72 billion. ETH’s market dominance stands at 12%, while the price has decreased by 0.83% in the last day.

ETH On-Chain Metrics Cool as DeFi Slows

Ethereum’s ecosystem shows signs of cooling. Total value locked (TVL) fell to around $74.208 billion, down 24% over 30 days. Balancer v2’s recent $120 million attack contributed to the decline. DApp activity dropped to $80.7 million in October, reflecting slower network performance and reduced staking rewards.

Trading activity also indicates caution. Volume is down 391.6% to $57.71 billion, while open interest decreased 0.09% to $39.16 billion. ETH’s OI-weighted funding rate remains low at 0.0073%, highlighting minimal bullish leverage. 

Weak ETF flows and macro pressure limit the short-term upside of Ethereum. Institutional appetite is not being reduced by increasing holdings in corporate treasuries. The derivatives markets imply weak performance, whereas the macroeconomic headwinds decrease the breakout towards $3,900. Investors are waiting for the on-chain growth to remain steady to sustain gains.

Ethereum has a possible positive catalyst from the upcoming Fusaka Upgrade in early December. A reduction in scalability and security is expected to improve the efficiency of the network. To sustain a sustained increase in the bullish market, analysts believe that improved macro variables, and positive on-chain growth will have to align to continue the bullish trend.

Also Read | Ethereum (ETH) Faces Sharp Dip, Holds Ground: 3.24% Surge Expected

Ethereum Holds VWAP Support, Eyes Key Targets

Despite headwinds, Ethereum shows resilience near VWAP support since April 7. Analyst Donald Dean points out the existence of lows which have been increasing since November 4, indicating accumulation and a possible bottom. 

Dean mentions that the following upside points of Ethereum are the levels of 4,400 and 4,955, which coincide with the important volumes. A sustained movement beyond these resistance zones may affirm a breakout, which will boost the bullish prospect. ETH could ultimately hit its 2021 highs, provided that the momentum and market confidence improve.

Also Read | Ethereum Eyes $3,500 as $137 Million Whale Position Fuels Bullish Momentum