Ethereum, the second-largest cryptocurrency in the world by market capitalization, has been going through a tough time over the past year, battling bear markets, the crypto winter and stagnating values. Although October saw it recover some of its previous strength, it’ll still be a while until the crypto recovers completely. However, if the latest news is anything to go by, then the Ethereum price is set to have a rebound sooner rather than later.
Whale transactions
While cryptocurrency was initially solely the domain of a few and far-between individuals who were aware of the development of the blockchain and all that means for tech development, crypto has really managed to take on a life of its own. Nowadays, investors from all over the world are adding digital currencies to their portfolios for diversification and to ensure that their holdings remain safe even in the event of a market falling or experiencing troubles.
Out of all the traders, whale investors stand out due to the sheer size of their transactions. As a result, many investors take them as one of the indicators that can inform them about market movements and let them make sound decisions regarding their own transactions. During the penultimate week of October, Ethereum managed to attract a record number of whale transactions.
Almost 6,000 movements were recorded on the blockchain as the environment navigated a rally. The Large Transactions Count remains above 1,500, showing that the whales have remained optimistic about the marketplace. Ethereum’s performance has been up nearly 10% compared to September, and while the gains are relatively modest, especially when compared to those seen by Bitcoin, which soared 30% higher, it’s important to remember that the altcoin went through some trouble to reach this area.
On-chain data also shows that institutional investors are betting on the fact that the Ethereum performance for November will be positive.
Price prediction
The whale dominance in the market for roughly three weeks, starting on October 14th, has convinced many that the price will also inevitably grow. It shows that the environment is going through a bullish moment and that if investors know how to take advantage of the momentum and can hold it long enough, things will definitely improve within the market. Data clearly shows the difference between quoted prices compared to the spot markets.
All the investors who crafted their strategy carefully see this as a crucial indicator. This is especially true when accounting for the fact that many of the traders are actually corporate and institutional entities. These investors are seeking the advantages of more regulated landscapes where they can carry out their transactions.
The figures show that March and May 2023 were the last two occasions when values remained buoyant for over twenty consecutive days. On both occasions, the price reached the $2,000 milestone. On October 30th, the run came to sixteen days, clearly showing that if the whales remain strong, they could reach the $2,500 level in November. The prolonged demand from whales can add further fuel to help the movement towards growth. Currently, the $2,100 level is the next major hurdle that Ethereum must overcome on its ascending path. 9.1 million addressed purchased 38.84 million ETH for an average of $2,102. This is very close to the yearly peak, so any resistance could also result in a pull-back. The bulls must intensify their buying pressure to avoid this scenario and clear the path to $2,500.
Bear pressure
The cryptocurrency market has been under the control of bearish tendencies for over a year. While 2023 appeared to signal the beginning of bullish dominance, it soon turned out this wasn’t the case, and the bears moved back into power. And it seems that there’s still a way to go until the current upswing becomes definitive and the bears lose their hold on Ethereum.
Even if November is set to be a month of major gains, it’s important to remember that the bears will also retest the $1,500 territory. The support line at $1,680 could pose a challenge in this regard, but it’s still possible that the bears could go beyond it eventually. Roughly 5.86 million holders bought 11.06 million Ether coins for approximately $1,687. When you also think about the current market momentum, it becomes more likely that investors will feel encouraged to start or continue hodling.
$22 million sale
An Ethereum whale liquidated nearly 14,000 ETH in October, creating rife speculations and starting a conversation regarding the possibility of market shocks. Ethereum co-founder Vitalik Buterin, himself known for large movements within the marketplace, said that it wasn’t he who conducted the sale and that he hasn’t sold any Ether coins since 2018.
Data shows that the whale got 32k worth of ETH back in January 2021 before the bull market came into full force. Then, the price skyrocketed to $1,239, with the whale seeing a bull run at almost $5,000. Many were wondering what could lead them to dump now after experiencing the benefits of the bullish market.
Technical analysts naturally commented on the situation as well, saying that the climbing selling pressure has also opened windows below the $1,000 that must be closed. It also means that a considerable price drop could come along at any time. Luckily, it seems that this danger has been averted, and ETH is instead set for steady growth. Others believe that if any drop intervenes along the way, it will be short-lived and signal the beginning of a new rally.
The bottom line
The cryptocurrency industry remains unpredictable, and it’s difficult to estimate how things will unfold either short – or long-term. The following months will be crucial for how Ethereum will continue throughout 2024, and investors will be even more vigilant and attentive than usual. If you’re planning any major movements in the near future, you might want to postpone them until the situation is more transparent.
If you must buy or sell, do so carefully and avoid any big transactions done all at once. Take your time and continue to monitor the market. It will prevent you from making rash decisions and putting your holdings in danger.