Forecast: Can Ethereum Price Reach $2,500 as Whales Add $210M to Overheated Market?

Ethereum Price Insights:

• Ethereum (ETH) price outperformed Bitcoin (BTC) last week as Blackrock’s Spot ETF filing sparked excitement across the pioneer smart contract ecosystem. 
• On-chain data readings reveal that a group of price-sensitive Ethereum whales added $210 million worth of ETH to their holdings over the weekend
• Technical analysis indicators pinpoint key resistance areas to watch out for as the bulls look to force a move above $2,500

Ethereum (ETH) price outperformed Bitcoin (BTC) last week as Blackrock’s Spot ETF filing sparked hopes that ETH will hit a new 2023 peak above $2,500. On-chain analysis highlights how ETH corporate investors positioned their trades for the coming week.

Crypto Whales Purchased ETH Worth $210 Million Over the Weekend. 

Ethereum price surged above $2,000 on Thursday, November 9, after BlackRock confirmed plans to launch an Ethereum Spot ETF in a NASDAQ filing. On-chain data shows that a price-savvy group of large institutional investors spent the weekend buying up millions of dollars worth of ETH, likely in response to the bullish news event. 

The Santiment chart below shows that the group of whales with balances of (1,000 to 100,000 ETH) held an opening balance of 13.98 million ETH on November 9. But at closing hours of Sunday, November 12, they had increased their cumulative holdings to 14.08 million ETH.

This implies that the whales added 100,000 ETH to their balances. When valued at the current price of $2,100, this implies that the whales invested a whopping $210 million during the weekend.

The Whales Wallet Balances metric tracks the changes in the number of coins held by large corporate entities and high-net worth investors. When it increases, it means that the whales have made fresh investments to accumulate more coins. 

The chart above clearly illustrates how the whales halted their month-long selling frenzy, just as the Blackrock ETH ETF Filing was announced on November 9.

But notably, rather than FOMO in on the rally instantly, It appears that the strategic whales looked to avoid buying at the top last week. Instead they had waited for ETH price to retreat, before swooping in to accelerate $210 million  accumulation over the weekend. 

Typically, when crypto whales make such large purchases in the middle of a price rally, it is a clear indication that they are positioned for prices to hit new peaks. If this thesis holds, ETH investors can anticipate a leg-up toward the $2,500 range in the week ahead. 

ETH Price Forecast: The Bulls Force another Leg-up to $2,500 This Week 

Last week, Ethereum price retreated as it approached its 2023 peak of $2,140. However, the on-chain data analyzed above illustrates how the whales capitalized on the retracement to accumulate $210 million. If the retail investors also latch on to the buying wave, ETH price could smash that psychological resistance level and edge toward the $2,500 level.

But on the flip side, the bears  could turn the Ethereum price rally on its head if the bulls fail to defend the major support territory at $1,905.  However, losing that support level could send ETH price spiraling toward the EMA-200 of $1,791.