The price of Ethereum (ETH), the leading smart contract platform, consolidated in the range of $1,750 to $1,850 last week. In-depth on-chain analysis by experts examines the fundamental metrics that could drive ETH price to $2,500 in November.
The rally in the cryptocurrency market last week overshadowed Ethereum’s price against Bitcoin (BTC). On-chain analysis could show how increased whale demand could affect ETH price movement in November 2023. With its upward momentum, Bitcoin reached a new peak of $35,300 in 2023. When considering monthly performance, BTC showed a 30% increase compared to ETH’s 8% gain as of September 30th.
However, on-chain data trends could indicate that major institutional investors will turn the performance table in favor of Ethereum in November. According to IntoTheBlock, Ethereum recorded 5,700 large transactions on October 24th. Particularly, the number of ETH whale transactions remained above 1,500 on each consecutive day. Whale transactions in terms of cryptocurrencies refer to the daily number of transactions with a nominal value exceeding $100,000.
This consistent increase in the number of ETH whale transactions could be a strong bullish signal indicating the presence of wealthy institutional investors in Ethereum markets. It also shows that major investors have been actively involved since the rally started in mid-October.
If whales continue to provide the liquidity the market needs, ETH could be among the biggest gainers in the next rally. Additionally, according to experts, the Coinbase Premium Index is another vital on-chain indicator currently highlighting the upward trend of Ethereum whales. The CryptoQuant chart shows that Ethereum’s Coinbase Premium Index has been positive since October 14th.
The Coinbase Premium Index shows the percentage difference between prices listed on Coinbase and Binance spot markets. Investors consider this as an important indicator because while Binance spot transactions are dominated by individual investors, most of the investors on Coinbase Pro are US-based institutional entities and high-net-worth investors who want to trade in a more regulated environment. Therefore, positive values of the Coinbase Premium Index could indicate significant buying pressure among whale investors trading on Coinbase Pro.