Hi,
It is definitely possible, but having gone through it, I can't really
recommend it. My device was a consumer Ubiquiti machine. Setting up
cross-compilation is a major pain (and the distribution packages are old
and unsigned), plus there's just so little ram. I think you device has
32 MiB of ram and only 4 MiB of flash. Tor is fairly efficient, and it
will work, but it's hard to simultaneously use and, say, do serious
configuration management.
I gave up and spent $35 (now €30) on a Raspberry Pi and never went back.
The box has enough CPU to build tor itself, and the 512 MiB of ram means
it's actually useable. Plus, Linux supports 802.1q VLAN tagging. I set
up a separate VLAN on my network and used the Pi to do the translation.
A few more moving pieces, sure, but way easier.
--Casey