The price of Ethereum (ETH), the leading smart contract platform, has been consolidating between $1,750 and $1,850 last week. Experts conducted an in-depth on-chain analysis and examined fundamental indicators that could push ETH price to $2,500 in November.
Comparison between BTC and ETH
The rise in the cryptocurrency market overshadowed the price of Ethereum against Bitcoin (BTC) last week. On-chain analysis can show how the increase in whale demand can affect ETH price action in November 2023. Riding on its upward momentum, Bitcoin reached a new high of $35,300 in 2023. When considering monthly performance, BTC is up 30%, while ETH has seen an 8% gain as of September 30.
However, on-chain data trends may indicate that major institutional investors will turn to support Ethereum in November. According to IntoTheBlock data, Ethereum recorded 5,700 large transactions on October 24. Among them, the number of ETH whale transactions remained above 1,500 for consecutive days. Whale transactions in cryptocurrency refer to the number of transactions with a face value of more than $100,000 per day.
The continued growth in the number of ETH whale transactions could be a strong bullish signal, indicating the presence of wealthy institutional investors in the Ethereum market. It also suggests that major investors have been actively participating since the rally began in mid-October.
Whale activity in ETH
If whales continue to provide the liquidity that the market needs, ETH could be one of the biggest gainers in the next rally. In addition, according to experts, the Coinbase Premium Index, another important on-chain indicator, currently highlights the upward trend of Ethereum whales. CryptoQuant charts show that Ethereum’s Coinbase Premium Index has been positive since October 14.
The Coinbase Premium Index shows the percentage difference between the prices listed on the Coinbase and Binance spot markets. Investors consider this an important metric because while Binance spot trading is dominated by individual investors, most investors on Coinbase Pro are US-based institutional entities and high-net-worth investors who want to trade in a more regulated environment. Therefore, a positive value for the Coinbase Premium Index could indicate significant buying pressure from whale investors trading on Coinbase Pro.
