Ethereum (ETH) price concluded October with a decline of over 7% from its opening to closing price. This marked the second consecutive month in the red, raising questions among investors about a potential hat trick for the bears in November.
On the daily chart, the bearish momentum experienced by ETH price in the last week of October showed signs of cooling off. While previous bearish retreats had typically given way to some recovery, ETH price demonstrated limited upside in the final two days of the month. At press time, ETH was trading at $3846, representing less than a 5% rally from its lowest price point of the previous week.

The absence of a significant comeback by the bulls following the recent dip indicated that demand was not yet prepared to flood back into the market. Despite this, there were observable signs of accumulation. For instance, while ETH price declined between October 27th and 30th, its Money Flow Indicator (MFI) maintained an upward trajectory. This divergence suggested that investors were buying during the price decline.
Low Address Activity Explains Subdued Ethereum (ETH) Price Recovery
The market concluded October in the "fear" territory regarding investor sentiment. Consequently, investors remained uncertain about the next market move, even as the bears eased their pressure. This uncertainty was clearly reflected in the address activity within the Ethereum ecosystem.
On-chain data revealed that daily active addresses on Ethereum reached a high of 480,000 in mid-August. By October 26th, this number had declined by over 24% to 364,000 addresses.

ETH active addresses registered a slight uptick at the end of October. However, daily active address activity has been cooling down over the last three days. This trend indicates weak network activity and subdued demand. In essence, the recent market uncertainty might also provide insights into what to anticipate if market excitement makes a comeback.
Despite these observations, several developments confirmed that longer-term bullish optimism remained active.
Ethereum Exchange Reserves Drop to 12-Month Lows
Ethereum exchange reserves extended their decline to a new 12-month low, despite the bearish price action of ETH in the final week of October. This trend is reassuring for ETH holders, as it signifies a shrinking supply of ETH on exchanges.

A shrinking supply suggests that ETH may become more susceptible to a supply squeeze. Furthermore, it indicates increased investor confidence, as exchange outflows are often associated with long-term holding strategies (HODLing).
Regarding its performance this month, the subdued demand at the start of November suggests that short-term uncertainty continues to dominate. This implies that ETH and other major cryptocurrencies might require a catalyst to trigger a sentiment shift in favor of a bullish outcome.
In the interim, the weak Ethereum (ETH) price movement at the beginning of November does not necessarily seal the cryptocurrency's fate for the month. The cryptocurrency experienced a bullish start in October but ultimately ended the month in negative territory. Nevertheless, Ethereum (ETH) remains one of the dominant blockchain ecosystems. Recent data has also revealed that it had the highest developer activity across the blockchain landscape.

