Ethereum managed to break the $1,800 resistance just recently, supported by a considerable increase in the creation of new addresses, and if this long-term trend of network expansion persists, its price could surpass the $2,000 threshold. At the time of writing, ETH is trending at a price of $1,798.80, the digital assets’ price going down 0.89% in the last 24 hours. According to the experts, big investors seeking more exposure to the market could impact the price of ETH, driving the price toward $2,500 in November 2023.
In The Cryptocurrency Market, Whales Are Vital in Influencing Price Shifts
According to Binance, Ethereum has outperformed Bitcoin during bull markets. Yet, this correlation started to fade in 2023 when Ethereum and other digital assets vigorously tried to survive as Web3, DeFi, and NFTs were put in a tight spot. Regulations surrounding the cryptocurrency industry, a lack of retail and institutional investors, and growing interest in US-dollar-backed stablecoins impacted the overall attitude of purchasers towards Ethereum. According to the Cointelegraph, Bitcoin’s market dominance has reached 54%, the highest in the past 30 months, and it will likely remain strong over the upcoming year ahead of the next halving.
Be that as it may, crypto whales are certain Ethereum is a good investment and are seeking to flip the game to its advantage. According to on-chain data, Ethereum registered roughly 5,700 large transactions in October, setting a new record and announcing the entrance of affluent corporate investors into the cryptocurrency market. A single action undertaken by a crypto whale, whether a buy, sale, or strategic hold, has the power to set in motion a sequence of reactions throughout the market. Whales can be a problem because they lower liquidity, the coins sitting in an account rather than being used.
But What Is a Crypto Whale? And Why Is It Important?
A crypto whale is basically a person or an organization that has a large amount of cryptocurrency and can, therefore, influence the market via their trading actions. As a rule, anyone who owns at least 10% of Ethereum can be considered a whale. Since transactions are transparent to anyone on the blockchain, it’s possible to identify significant transfers. Twitter is a popular place for finding crypto whales because investors usually tweet about their tactics and financial knowledge. It’s not a good idea to take advice from others because they may manipulate the market to influence the price of Ethereum.
Bitcoin whales and Ethereum whales aren’t the same in the sense that the former accumulates and the latter disposes of coins. If the whales supply much-needed market liquidity, investors can make quick trades without destabilizing Ethereum, as there are sufficient buyers willing to purchase or trade. The increase in the number of large Ethereum transactions could indicate that prices may rise explosively over the following days or weeks. The Ethereum price might reclaim $2,000 by the end of the year on account of lower liquidity. Only time will tell if Ethereum will sustain its bullish momentum or whether new lows are on the horizon.
There Are Compelling Reasons to Follow Crypto Whales
Traders and investors continually monitor the Ethereum entering and exiting cryptocurrency exchanges in an attempt to identify new and emerging trends and predict the price movement of Ethereum. When a digital asset moves in significant quantities to an exchange, a selling action is expected to occur, causing the price to drop. Alternatively, if cryptocurrency moves from an exchange to a wallet, the resulting price will be higher. Crypto tracking can be done on any wallet but mainly on whale addresses because their actions influence price movements. Tracking crypto whales’ wallets helps understand market sentiment and obtain invaluable information.
Given their influence, it’s necessary to observe, check, and keep a continuous record of crypto whales’ on-chain activity to inform your trading decisions. On-chain activity takes precedence over price action, which means that by studying the transactions of an individual or an organization, you can get insight into how the cryptocurrency market will move. Crypto whales have more experience and information as compared to retail investors, but that doesn’t mean they always make the right choices. Equally, whale activity is an indicator of market trends, but there’s no guarantee whatsoever Ethereum will be successful. More often than not, professional traders resort to crypto whale tracker platforms.
What’s The Realistic Price Prediction for Ethereum?
As mentioned earlier, Ethereum is expected to hit $2,000 in November on account of intense buying pressure. Major investors have been involved since the very get-go, so Ethereum could be among the most significant gainers. Ethereum attracts a growing number of sophisticated buyers who possess superior information about prices and volatility. It’s important for the investment community to understand the drivers of Ethereum price. The performance of the digital asset depends on the supply and demand of the market and broad sentiment, which raises the odds of short-term moves.
The recent movement of crypto whales hasn’t had an impact on price, at least not yet. Most likely, Ethereum will continue its upward trajectory, but for the time being, it’s trading below the Relative Strength Index, which measures the speed and change of price movements. The Ethereum RSI tends to stay above 30 and can even hit 70, but it’s rare to see it exceed 70. On the other hand, the indicator frequently hits 30 or below. Analyzing Ethereum price trends lets you know when it’s the right time to enter the market so you can reap maximum benefits. There are several ways to predict the Ethereum price, including technical analysis, fundamental analysis, and sentimental analysis.
All in all, Ethereum seems to be in a recovery phase, having largely underperformed Bitcoin in 2023. Indeed, Ethereum doesn’t have Bitcoin’s recent performance, but analysts remain optimistic regarding its performance, entering the demand zone. It doesn’t appear to be moving towards any support but pushing above resistance. Ethereum price forecasting is challenging due to volatility and dynamism, meaning it’s possible to predict price movement only to a certain extent.