Predicting Ethereum’s November Performance: A $2,500 Scenario

Ethereum Big Investors have been trading a remarkably large volume of transactions in tandem with the decline in stock markets. This is how the price of ETH may change in November.

Predicting Ethereum's November Performance: A $2,500 Scenario
Source: The Daily Hodl

The price of Ethereum has been stable for the previous week, hovering between $1,750 and $1,820. Recent patterns in on-chain data indicate that significant investors have been using the Ethereum network to execute an abnormally high number of transactions. Technical analysis demonstrates how this can affect the November 2023 price movement of ETH.

Predicting Ethereum’s November Performance: A $2,500 Scenario,Predicting Ethereum’s November Performance: A $2,500 Scenario

An Unusually High Number of Large Transactions are Being Drawn to Ethereum

Due to the fact that the earnings results from Google/Alphabet (GOOG), Facebook (META), and other big companies did not meet investor expectations, US stock markets and index funds had a poor week last week.

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Following the stock’s dismal performance, big institution investors swiftly shifted to Ethereum (ETH) to hedge their risks, according to on-chain statistics.

On October 24, Ethereum registered 5,700 Large Transactions, according to IntoTheBlock. Notably, since then, there have been four trading days in a row when the number of large transactions on ETH has stayed over 3,000.

Large Transactions, as used in the cryptocurrency world, are the total number of individual transactions on a trading day that are valued at more than $100,000.

The announcement of the entry of well-funded corporate investors into the Ethereum markets is indicated by the dramatic rise in big transactions.

The timing further demonstrates that when the S&P 500 equities fell to a five-month low, major investors started to shift their focus to the second-largest cryptocurrency by market capitalization. It should come as no surprise that the 5,700 ETH Large Transactions on October 24 represent the largest number since March 11.

For a variety of reasons, a rise in the frequency of large transactions is sometimes bullish for the price of an asset. First of all, it gives the market the much-needed liquidity that participants want in order to execute trades profitably at high prices.

More significantly, there is temporary shortage as a result of the major investors’ excessive demand. Based on past trends in on-chain data, the price of ETH registered 12,400 whale transactions in March, which sparked a 44% rise to a top of $2,100 in 2023.

Therefore, as more corporate investors enter the cryptocurrency markets to hedge their positions, the price of ETH might soar towards $2,500 in November if US stock prices continue to decline.

ETH Price Forecast: Towards $2,500

From an on-chain standpoint, Ethereum is well-positioned to surpass the crucial $2,500 mark in November given the rise in Large Transactions and the downward trend in stock prices. Important technical analysis signs, meantime, support this position as well.

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Fundamental indicators such as the Simple Moving Average (SMA) and Exponential Moving Average (EMA) are used to spot trends and determine possible levels of support and resistance.

Ethereum’s EMA 30 is now trading at $1,665.99 as of October 28, while the SMA 30 is at $1,646. The EMA and SMA are both below the current price of $1,785, which suggests a strong short-term bullish attitude.

Predicting Ethereum’s November Performance: A $2,500 Scenario,Predicting Ethereum’s November Performance: A $2,500 Scenario,Predicting Ethereum’s November Performance: A $2,500 Scenario, Ethereum coin Crypto news, Ethereum coin News

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