Ethereum’s price has been consolidating within the range of $1,750 to $1,850 for the past week, showing signs of a potential upward surge in November. While it briefly lost ground to Bitcoin during a recent market rally, on-chain analysis highlights the growing influence of large investors and whales on Ethereum’s price trajectory.
Amidst last week’s crypto market rally, Bitcoin soared to a new 2023 peak of $35,300, overshadowing Ethereum’s more modest 8% gains from September 30. Nevertheless, on-chain data suggests that Ethereum might stage a comeback in November, thanks to increased activity from institutional investors.
According to data from IntoTheBlock, Ethereum saw a substantial increase in Large Transactions, with a staggering 5,700 such transactions occurring on October 24. Remarkably, this trend has continued, with the daily ETH Large Transaction Count consistently exceeding 1,500. In crypto terms, Whale Transactions are those exceeding $100,000 in nominal value. This rise in large transactions signifies the active involvement of deep-pocketed corporate investors in the Ethereum markets and is seen as a strong bullish signal that bodes well for the cryptocurrency’s future.
Whales have continued to dominate the markets for over two weeks, as indicated by the Coinbase Premium Index. This vital on-chain indicator has remained positive since October 14, highlighting the bullish sentiment among Ethereum whales. The Coinbase Premium Index measures the percentage difference between quoted prices on Coinbase and Binance spot markets. Investors consider it crucial because it reflects the preferences of US-based corporate entities and high-net-worth individuals who seek the regulatory oversight offered by Coinbase Pro. Positive values of the Coinbase Premium Index indicate robust buying pressure among whale investors on Coinbase Pro.
Analyzing historical data, we find that the last two times Ethereum’s Coinbase Premium Index maintained positive values for up to 20 consecutive days were in March and May 2023. On both occasions, ETH’s price surged past the $2,000 mark. As of October 30, the current positive run has reached 16 days, potentially signaling another bullish run. If whales maintain their dominance for another week, Ethereum’s price could break through the $2,500 barrier in November.
From an on-chain perspective, the sustained demand from whales suggests a possible path for ETH to reach $2,500 in the coming weeks. The Global In/Out of the Money Around Price (GIOM) data, which groups ETH holders by their entry prices, further supports this bullish outlook. It indicates that the $2,100 sell wall presents a major obstacle for Ethereum’s price as it aims for $2,500. However, with strong buying pressure from bullish whales, ETH could overcome this resistance.
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On the downside, bearish sentiment might target a retest of the $1,500 territory, with the initial support line at $1,680 posing a challenge. Nevertheless, given the current positive market momentum, holders are likely to be encouraged to ‘HODL.’ Failure to defend this support level could potentially lead to a reversal towards $1,500.
As November unfolds, all eyes are on Ethereum’s price movement, with the influence of whales and the potential for a bullish surge towards $2,500 dominating the conversation in the crypto community.
