Ethereum price has consolidated around the $1,750 to $1,850 range over the past week. On-chain analysis pinpoints the key metrics that show how large investors could propel ETH price toward $2500 in November.
Ethereum price lost ground to Bitcoin (BTC) as the crypto market rally broke out last week. On-chain analysis shows how increased whale demand could impact ETH price action in November 2023.
Ethereum is Attracting a High Number of Whale Transactions
Amid last week’s crypto market rally, Bitcoin raced to a new 2023 peak of $35,300, leaving Ethereum in its wake. Regarding monthly performances, BTC is up 30% from September 30, compared to ETH’s modest 8% gains.
However, on-chain data trends show that large institutional investors are betting on the performance scoreboard to flip in Ethereum’s favor in November.
According to IntoTheBlock, Ethereum registered a whopping 5,700 Large Transactions on October 24. Notably, the ETH Large Transaction Count has remained above 1,500 in each of the consecutive days that have followed.
Ethereum (ETH) Large Transaction vs. Price | Source: IntoTheBlock
In Crypto terms, Whale Transactions refer to the daily number of transactions exceeding $100,000 in nominal value.
This steady increase in the number of ETH Large transactions is a strong bullish signal that announces the heavy presence of deep-pocketed corporate investors within the Ethereum markets.
The timing also shows that the large investors have been actively involved since the rally began around mid-October. If the whales continue supplying much-needed market liquidity, ETH could be among the biggest gainers during the next upswing.
Whales Have Dominated the Markets For Over Two Weeks
The Coinbase Premium Index is another vital on-chain indicator that currently highlights Ethereum whales’ bullish disposition. The CryptoQuant chart below shows that Ethereum’s Coinbase Premium Index has been positive since October 14.
Ethereum (ETH) Coinbase Premium Premium Index vs. Price | Source: CryptoQuant
The Coinbase Premium Index shows the percentage difference between quoted prices on Coinbase compared to Binance spot markets.
Strategic investors consider it an important indicator because while Binance spot trading is dominated by retail traders, the majority of traders on Coinbase Pro are US-based corporate entities and high-networth investors looking to trade in a more regulated landscape.
Hence, positive values of the Coinbase Premium Index signal intense buying pressure among whale investors trading on Coinbase Pro.
A closer look at the historical data shows that March and May 2023 were the last two occasions that Ethereum’s Coinbase Premium Index trended in positive values for up to 20 consecutive days. And both times, the ETH price scaled the $2,000 barrier.
As of October 30, the current run has reached 16 days. Hence, if the whales maintain their dominance for another week, the ETH price could break toward $2,500 in November.
ETH Price Prediction: Road to $2,500?
From an on-chain standpoint, the prolonged demand among the whales could drive ETH price toward $2,500 in the weeks ahead. The Global In/Out of the Money Around Price (GIOM) data, which groups ETH holders according to their entry prices, also confirms that bullish narrative.
It shows that the $2,100 sell wall is the major obstacle for Ethereum’s price on the road to $2,500. As depicted below, 9.1 million addresses had bought 38.84 million ETH at the average price of $2,102. Considering that this is close to the current yearly peak, the resistance could trigger a pull-back.
But if the bullish whales intensify the buying pressure, ETH price could break toward $2,500 as predicted.
Ethereum (ETH) Price Prediction, GIOM chart | Source: IntoTheBlock
On the low side, the bears will be angling for a retest of the $1,500 territory. However, the initial support line at $1,680 could pose a challenge in that regard.
As seen above, 5.86 million holders had bought 11.06 million ETH at an average price of $1,687. Considering the current positive market momentum, they will likely be encouraged to HODL.
But failure to defend that support level could open the doors to a reversal toward $1,500.
