Ethereum (ETH) faces a complicated path to recovering the $3,900 level. The digital asset fell 11% last week, struggling to hold $3,400. This weakness is largely due to weak spot Ethereum ETF demand and general market caution, according to data from CoinGlass.
Derivatives market data paints a picture of limited confidence. The annualized premium for ETH futures stands at 4%, unchanged from the previous week. This figure is below the normal 5% to 10% range, indicating a limited appetite for bullish positions. Furthermore, U.S.-listed products recorded $507 million in net outflows during November, highlighting the weak spot Ethereum ETF demand.
Frustration among ETH investors is growing, as the asset underperformed the broader crypto market by 4% weekly. This caution is exacerbated by macroeconomic risks. A University of Michigan survey revealed that U.S. consumer sentiment fell to its lowest level since 1978. Likewise, the prolonged U.S. government shutdown continues to hurt the economy.
Can on-chain activity save Ethereum from market distrust?
Within the Ethereum ecosystem, internal metrics also show warning signs. The total value locked (TVL) on the network fell to $74 billion, its lowest level since July. This represents a 24% drop in the last 30 days. On the other hand, a $120 million exploit on the DeFi platform Balancer v2 has shaken confidence. Ethereum DApp revenues also fell 18% in October, generating $80.7 million.
However, not all metrics are negative. The first week of November showed early signs of strength in on-chain activity. Data from Nansen indicates that active addresses climbed 5% and transactions rose 2%. This growth outpaced rivals like Tron and BNB Chain. The only clear catalyst on the horizon is the upcoming Fusaka upgrade, scheduled for early December, which promises scalability enhancements.
