Forecast: Ethereum (ETH) Price Set to Break Above $2,000 as Whale Demand Heightens

Ethereum Price Forecast:

• Ethereum (ETH) experienced a significant increase in whale demand as the crypto market rally entered its second consecutive week. 
• Ethereum’s Coinbase Premium Index has trended in positive values for two consecutive weeks, showing that Ethereum whales have maintained a bullish disposition.
• Technical analysis data trends show that ETH is positioned for another leg-up toward the $2,000 range

On October 30, Ethereum (ETH) price briefly broke above the $1,820 mark for the first time in over a week. On-chain analysis examines how intense buying pressure from crypto whales could drive Ethereum price toward $2,000 in November 2023. 

The Whales’ Have Dominated the Markets For Over Two Weeks

Ethereum has lost ground to Bitcoin (BTC) since the crypto market rally started in the mid–October. In terms of monthly performances, BTC is up 30% from September 30, compared to ETH’s 8% gains in October.  

On-chain analysis provides some pointers that large institutional investors are looking to flip the November performance scoreboard in Ethereum’s favor.

CryptoQuant’s Coinbase Premium Index is a vital on-chain indicator that currently highlights how Ethereum whales’ have been intensifying their buying pressure. 

The chart below shows that Ethereum’s Coinbase Premium Index has been trending in positive figures since the market rally began around October 14. 

In simple terms, the Coinbase Premium Index captures the percentage price difference between quoted ETH prices on Coinbase Pro compared to Binance exchange. When it enters Positive Values it means that ETH prices on Coinbase has marginally exceeded what was quoted on Binance during that period.

While the difference is usually slim margins below 1%, it is still considered an important indicator. This is because while Binance spot trading is dominated by retail traders majority of Coinbase Pro registered accounts are US-based corporate entities and high net-worth investors looking to trade within a better regulated environment. 

Hence, when the Coinbase Premium Index positive values of the Coinbase Premium Index signals intense buying pressure among whale investors trading on Coinbase pro.  

Notable, the last two occasions that Etherum Coinbase Premium Index trended in positive values for upto 20 consecutive days was in March and May 2023 respectively. And on both occasions ETH price broke above the $2,000 barrier. 

As of October 30, the current run has now reached 16 consucutive days. Hence, historical trend reoccures and the whales maintain their buying pressure for another week, ETH price will likely break above $2,000 in the days ahead.

ETH Price Prediction: Road to $2,000?

From an on-chain perspective, the increase in Whale demand could drive Ethereum price above the  $2,000 in November. Meanwhile, the daily timeframe technical analysis indicators also affirms this bullish stance. 

As of Oct 28, Ethereum price is trading at $1,800. Ethereum Exponential Moving Average (EMA20) stands at $1,703, whereas the Simple Moving Averge (SMA-20) is at $1,662. 

With both the EMA and SMA positioned firmly below the current price of $1,800, it signifies a prevailing short-term bullish sentiment. 

Hence, if the bulls seize the momentum as predicted, ETH will face initial resistance situated at the upper Bollinger band around $1,872. However a decisive upswing above that level could see Ethereum price reach a new 2023 peak above the $2,150 area.    

Conversely, the bears could invalidate that bullish prediction if ETH fails to defend the intial support level at the lower Bollinger band at $1,660.

Although, unlikely due to the current level of whale demand, but a larger downswing below $1,660 mark could open the doors to further reversal toward $1,500.