Ethereum’s (ETH) November Price Outlook: A Potential Surge to $2,500
TL; DR
The price of Ethereum may surge to $2,500 in November 2023.
Large-scale investment in ETH and the recent decline in prices of US stock has pushed the Ethereum price up.
Ethereum maintains a bullish outlook on the long timeframe.
Introduction
The cryptocurrency market is currently experiencing a strong recovery with major coins like ETH, Bitcoin, Binance Coin and Solana bullish on the long timeframe. Already, Bitcoin has crossed above $36,000 while ETH has surpassed $2,000. However, the market expects ETH to rise further.
Today, we discuss ETH’s possibility of surging above $2,500. We also explore the factors that may push its price up.
ETH Whale Transactions Surge
Recently, Ethereum (ETH) recorded a surge in large transactions, popularly known as whale transactions, reaching a semi-yearly high on 24 October, the highest it had since February.
IntotheBlock said, “Institutional and whale demand has picked up strongly, with Bitcoin seeing an 80% increase in the volume of transactions of over $100k, Ethereum 170%, and Polygon over 3,800% compared to 30 days ago.”
Specifically, on 24 October there were 6,049 transactions worth $100,000. In terms of cryptocurrency each transaction was at least 1,500 ETH. The following graph gives greater details on Ethereum performance.
Ethereum Transaction Activity - IntotheBlock
The rise in whale transactions is not limited to Ethereum as other coins and tokens witnessed the same trend during that period. As an example, bitcoin had 14,833 transactions of at least $100,000 each. That has been the highest whale transactions after the multiple bitcoin ETF applications by large asset management firms that include BlackRock and Fidelity.
The rise in whale activity involving different cryptocurrencies in recent days indicates high confidence investors have in these digital assets. What is happening shows that the large-investors have been involved in ETH since the start of the current rally that began in mid-October. If they continue to buy Ethereum it will become one of the main gainers for November.
The Ethereum price is likely to reach $2,500 considering its current value of $2,053.71 as the next graph shows.
Ethereum Price - CoinGecko
Looking at the above graph, you can tell that Ethereum has been in an uptrend since mid-October when it crossed above the $1,500 price mark. In fact, over the past weeks ETH consolidated its price between $1,750 and $1,850.
There is no doubt that large ETH transactions will propel the Ethereum price to $2,500. And it is important to note that a large transaction, as referred here, is worth $100,000 or more during a given day.
Large transactions have much significance in the market. A rise in the number of large transactions is bullish for a number of reasons. First, the participation of crypto whales increases liquidity for a coin such as ETH. As a result, traders can easily ute large trades at any time, thereby creating confidence in the market.
Second, the large demand from these investors leads to short-term scarcity in the market which helps to push its value up.
Coinbase Premium Index Shows ETH Dominance in the Market
Coinbase Premium Index, an important crypto market indicator, has recently indicated Ethereum dominance in the market for over three weeks that stretched from the third week of October to the first week of November. Data on CryptoQuant indicates that Ethereum’s Coinbase Premium Index was positive since 14 October as the next graph illustrates.
Ethereum’s Coinbase Premium Index - CryptoQuant
Basically, the Coinbase Premium Index shows the level of whale accumulation for a cryptocurrency. This is because it tracks institutional whale transactions. An increase in the index indicates that whales are accumulating the specific cryptocurrency at a higher premium. On the other hand, a decreasing trend shows that the large-scale investors are selling the asset at a lower premium.
Specifically, the Coinbase Premium Index indicates the percentage difference between quoted prices on Binance and Coinbase spot markets. Positive values of the index show high buying pressure among the whales.
There is evidence that positive values have been accompanied by ETH price rises. For instance in March 2023 the ETH price spiked to $2,000. During that period the Ethereum Coinbase Premium Index was positive for 20 consecutive days.
Reasons Why ETH Price May Rise in November
After a few days in November we have already noticed a strong Ethereum bullish momentum. And we expect the trend to continue until the end of the month and probably spillover into December. Right now, let’s discuss the factors that may push Ethereum price to $2,500 this month.
Falling stock price: In the recent past the fall in price of the US stock prices has influenced ETH’s upward price momentum. For example, the prices of (META), Google/Alphabet (GOOG) and S&P 500 dropped. When prices of stocks decrease some investors switch their funds to the crypto market. Definitely, the major cryptocurrencies like bitcoin and ETH benefit as they get more investors.
Increase in the Number of Large-scale Ethereum Investors: We have already noticed that large investors purchase ETH at certain times of the year. Starting from October many Ethereum whales have been buying ETH, forcing its price up. If this momentum continues the ETH price will rise further.
Ethereum Price Outlook
ETH price predictions show a strong possibility of ETH price advancing towards $2,500. Several technical analysis indicators like the Simple Moving Average (SMA) and Exponential Moving Average (EMA) show that the Ethereum price outlook is bullish.
For instance, on 30 October the Ethereum EMA 30 was pegged at $1,665.99 while the SMA 30 was at $1,646. By that time, Ethereum was very bullish because both EMA and SMA were below the existing ETH price, $1,785.
The Global In/Out of the Money around Price (GIOM) data also confirms that ETH was bullish. According to this indicator the $2,100 sell wall will most likely prevent the ETH price from rising higher. This is because 9.1 million addresses purchased 38.84 million ETH at an average price of $2,102. Therefore, the $2,100 resistance level may trigger an ETH price pullback. The following image paints the full picture.
Ethereum (ETH) Price Prediction, GIOM chart - IntoTheBlock
On the other hand, the ETH bears may push its price lower, but the support area around $1,680 may stall their efforts. The reason is that 5.86 million ETH holders purchased 11.06 million at an average price of $1,687.
However, the accuracy of this ETH price forecast depends on how ETH whales sustain their buying momentum. Considering the current market outlook, the whales may continue to buy Ethereum during November.
Conclusion
Ethereum has been bullish since mid-October due to the activity of large scale transactions. In the meantime, experts predict that the ETH price may reach $2,500 by the end of November. The key factors driving this trend include the increase in the number of Large-scale Ethereum Investors and the depressed values of US stocks.
FAQs about Ethereum
How much will Ethereum be worth in 2023?
The price of Ethereum should fluctuate between $2,000 and $3,000 by the end of 2023. Increased investment by institutional investors should contribute to its rally towards $2,500.
How much was ETH 5 years ago?
In 2019 the price of ETH fluctuated between $102.93 and $361.40. After that low performance ETH rallied between 2020 and 2021 when it attained its all-time-high price of $4,878.26 on 10 November.
What is the highest price that ETH has ever been?
Ethereum attained an all-time-high value of $4,878.26 on 10 November 2021. This followed its rally that started in 2019 through 2020 into 2021. It is currently about 57% lower than its ATH as it is trading at around $2,056.
How much will Ethereum be worth in 2030?
In 2030 the price of Ethereum will likely fluctuate between $30,547.10 and $31,411.84. The main factors that may influence its future price are institutional adoption, regulatory clarity and the approval of spot Ethereum exchange traded funds (ETFs).
