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Ethereum price has been consolidating between $1,750 and $1,850 over the past week. On-chain analysis pinpoints key indicators showing how large investors were able to push ETH prices to $2,500 by November.
Ethereum price fell relative to Bitcoin (BTC) as the cryptocurrency market exploded last week. On-chain analysis shows how increased whale demand will impact ETH price action in November 2023.
Ethereum is attracting huge whale trades
Bitcoin hit a new 2023 high of $35,300 during last week’s cryptocurrency market rally, leaving Ethereum far behind. Looking at monthly performance, BTC is up 30% since September 30, while ETH is up just 8%.
However, on-chain data trends show that large institutional investors are betting big on Ethereum’s performance in November.
According to IntoTheBlock, Ethereum registered as many as 5,700 large transactions on October 24. It is worth noting that the number of ETH large transactions remained above 1,500 for several consecutive days.
Compared to the Ethereum (ETH) price, the trading volume is large.
In cryptocurrency terms, whale transactions refer to the number of transactions with a nominal value of more than $100,000 per day.
The steady increase in the number of large ETH transactions is a strong bullish signal, indicating the presence of a large number of well-capitalized institutional investors in the Ethereum market.
The timing also suggests that major investors have been actively participating since the rally began around mid-October. If whales continue to provide much-needed liquidity to the market, ETH could be one of the biggest gainers in the next bull run.
Whales have dominated the market for more than two weeks
The Coinbase Premium Index is another important on-chain indicator that is currently highlighting the bullish trend of Ethereum whales. The CryptoQuant chart below shows that the Ethereum Coinbase Premium Index has been positive since October 14.
Coinbase Premium Ethereum Index.
The Coinbase Premium Index shows the percentage difference between the price listed on Coinbase and the price in the spot market on Binance.
Strategic investors see this as an important metric because while spot trading on Binance is dominated by retail traders, the majority of traders on Coinbase Pro are U.S. businesses and high-net-worth investors who want to trade in a more regulated environment.
Therefore, the positive value of the Coinbase Premium Index indicates strong buying pressure from whale investors trading on Coinbase Pro.
A closer look at historical data shows that March and May 2023 were the last two times that the Ethereum Coinbase Premium Index was positive for 20 consecutive days. The price of ETH broke through the $2,000 mark twice.
As of October 30, the run is currently at 16 days. Therefore, if the whales’ dominance continues for another week, the ETH price could break $2,500 in November.
ETH Price Prediction: Road to $2,500?
From an on-chain perspective, continued whale demand could drive ETH prices to $2,500 in the coming weeks. Global In/Out Money Around Price (GIOM) data, which groups ETH holders by their entry price, also confirms this bullish story.
It shows that the $2,100 sell wall is the main obstacle for Ethereum price to rise to $2,500. As shown in the figure below, 9.1 million addresses bought 38.84 million ETH at an average price of $2,102. Considering that the level is close to the current yearly high, the resistance may trigger a pullback.
But if bullish whales increase buying pressure, ETH price could break through $2,500 as expected.
GIOM chart.
On the lows, the bears will try to retest the $1,500 area. However, the initial support line at $1,680 is likely to pose a challenge in this regard.
As shown in the above chart, 5.86 million holders purchased 11.06 million ETH at an average price of $1,687. Given the current positive market dynamics, they may be encouraged to hold.
But failure to hold this support could open the door for a reversal towards $1,500.
#ETH #BTC #lastpass #tia #unibot
【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.