Forecast: Ethereum Price Could Cross $2,500 in November If This Happens

Ethereum Price Forecast: Key Insights

• Ethereum (ETH) attracted a record number of 5,700 large transactions ahead of last week’s earnings reports from big tech companies.
• On-chain data trends show that ETH price entered a 44% rally to a 2023 peak of $2,100 after it recorded 12,400 whale transactions back in March.
• Vital technical indicators also affirm that ETH bulls are building momentum for a positive start to November.

Ethereum price has stagnated around the $1,750 to $1,820 range over the past week. According to recent on-chain data trends, large investors have been conducting an unusually high number of transactions on the Ethereum network recently. Technical analysis shows how this could impact ETH price action in November 2023. 

Ethereum is Attracting an Unusually High Number of Large Transactions 

US stock markets and index funds had a negative outing last week as Google/Alphabet (GOOG), Facebook (META) and other tech companies’ earnings reports fell short of investors’ expectations. On-chain data shows that large institutions investors quickly turned to Ethereum (ETH) to hedge their bets in the wake of the stock’s poor showing. 

According to IntoTheBlock, Ethereum recorded 5,700 Large Transactions on October 24. And notably, the ETH Large Transaction count has remained above 3,000 in four consecutive each trading days since then. 

In Crypto parlance, Large Transactions refer to number of single transactions that exceed $100,000 in value on a given trading day. 

This sharp increase in large transactions is a strong bullish signal that announces the entrance of deep-pocketed corporate investors into the Ethereum markets. 

The timing also shows that the large investors began to turn toward the second-largest cryptocurrency by market capitalization as the S&P 500 stocks plunged to a 5-month low. Unsurprisingly, the 5,700 ETH Large Transactions recorded on October 24, is the highest since March 11.

An increase in the number of Large Transactions is often bullish for an asset price for several reasons. Firstly, it provides much-needed market liquidity, enabling participant to execute trades efficiently at high prices. 

More importantly, the outsized demand from the large investors leads to short-term short term scarcity. According to the historical on-chain data trends, ETH price entered a 44% rally to a 2023 peak of $2,100 after it recorded 12,400 whale transactions back in March.

Hence, if US stock prices continues to fall, ETH price could race toward $2,500 in November as more corporate investors enter the crypto markets to hedge their positions. 

ETH Price Prediction: Road to $2,500

From an on-chain perspective, the increase in Large Transactions and downtrend in stock prices puts Ethereum price in a prime position to break above thee critical $2,500 in November. Meanwhile, vital technical analysis indicators also affirm this stance 

The Simple Moving Average (SMA) and Exponential Moving Average (EMA) are fundamental indicators used to identify trends and establish potential support and resistance levels. 

As of Oct 28, Ethereum EMA 30 stands at $1,665.99, whereas the SMA30 is at $1,646. The fact that both the EMA and SMA are positioned below the current price of $1,785 signifies a robust bullish sentiment in the short term.

If the bulls seize the momentum as predicted, the will face initial resistance around the $1850 level. However, as depicted in the chart below, if the can pull off a decisive breakout from that sell-wall, the $2,005 level is the next significant obstacle on the road to $2,500    

Conversely, the bears could wrestle control of the market if ETH fails to hold the $1,650 support level.

Although unlikely within the current on-chain trends, a larger downswing below $1,650 could open the doors to further reversal toward $1,520.