After a volatile month, Ethereum (ETH) appears to be regaining stability. On Wednesday morning, ETH traded around $2,900 — a modest rebound following the sharp correction earlier in November. Many investors are now wondering whether Ethereum can recover in December and potentially outperform Bitcoin once again.

Why Did Ethereum Drop in November?

In November, the crypto market faced significant pressure due to so-called derivatives resets, which forced many leveraged positions to close. This resulted in additional selling pressure. Gas fees on the Ethereum network also fell sharply, signaling a temporary decline in network activity. Meanwhile, the broader risk-off sentiment across the market weighed on both Bitcoin and Ethereum. Still, early signs of stabilization are emerging. Over the past 24 hours, the ETH price has risen by roughly 4%, indicating renewed confidence.

On-Chain Data Remains Strong

Despite the price decline, activity on the Ethereum blockchain remains remarkably robust. The average gas fee recently dropped to 0.085 gwei, one of the lowest levels this year. As a result, transactions became extremely inexpensive, lowering the barrier for users. The network also continues to operate at high capacity. In the last 24 hours, roughly 1.5 million transactions were processed, around 464,000 addresses were active, and DEXs recorded more than $2 billion in trading volume.

The derivatives market is showing signs of recovery as well. Open interest for ETH stands around $35.84 billion, while futures volume over the past 24 hours has climbed to $88 billion. Market activity is picking up — without the extreme leverage that previously caused instability.

Will Ethereum Outperform Bitcoin?

Analyst Michaël van de Poppe is paying close attention to the ETH/BTC pair, as it often indicates when Ethereum may start gaining market share from Bitcoin. The pair has traded for months above a key support zone between 0.02920 and 0.03200 BTC, an area where consistent demand tends to appear.

The price is currently consolidating within an increasingly narrow range, sitting just below a descending trendline that has acted as resistance since the summer. A breakout above this trendline could signal a shift in market structure. Van de Poppe highlights potential price targets between 0.036 and 0.038 BTC, with a possible move toward 0.042 BTC if a strong breakout occurs. If the resistance holds, however, a pullback toward 0.030 BTC remains likely.

Outlook for December

Ethereum may be entering a pivotal phase. Network activity remains solid, the derivatives market is stabilizing, transaction costs are historically low, and regulated futures products could boost institutional interest. At the same time, the ETH/BTC pair appears to be setting up for a decisive move. Whether Ethereum can continue recovering in December will largely depend on how the price reacts to current levels and on a potential breakout in the ETH/BTC chart. What is clear, however, is that Ethereum‘s underlying fundamentals appear stronger than recent volatility suggests.

Disclaimer: This is not financial advice. Always consider conducting your own research and seeking professional guidance before making investment decisions.