Ethereum has been making significant strides in November, with the price soaring by 34% and hitting $3500 for the first time since July. While Bitcoin has been reaching new all-time highs consistently, Ethereum has managed to stand out with its impressive performance.
One of the key factors contributing to Ethereum’s success has been the record weekly netflow of +10k ETH in staking. This influx of ETH into staking has helped reduce the coin’s supply, which is crucial for lowering inflation and driving up prices. With increased demand and improved staking infrastructure, Ethereum is in a strong position for future value growth.
The reduction in ETH’s supply is evident in the rising stock-to-flow ratio, indicating that the asset is becoming scarcer. This scarcity is essential for driving up prices, especially when combined with increased demand from large holders. The influx of large holders actively purchasing Ethereum has created buying pressure and further reduced the coin’s supply.
As a result of these positive market dynamics, Ethereum’s price has surged by 7.82% in recent days, reaching $3381 at the time of writing. While the altcoin is still facing resistance from bears, the upward momentum is promising. If buyers continue to control the market, Ethereum could reclaim the $3560 resistance level and potentially see more gains in the near future.
Overall, Ethereum’s performance in November has been impressive, and the positive indicators point towards a bright future for the altcoin. With increasing demand, reduced supply, and bullish momentum, Ethereum is well-positioned for continued growth and success in the cryptocurrency market.
