Intense buying pressure from Crypto whales could push ETH price up

Ethereum recently managed to break the resistance of $1,800, supported by a significant increase in the creation of new addresses, and if this long-term trend of network expansion continues, the price may cross the $2,000 threshold. At the time of writing, ETH is at a price of $1,798.80, the price of the digital asset has fallen by 0.89% in the last 24 hours. According to the experts, large investors seeking more exposure to the market could influence the price of ETH, driving the price to $2,500 in November 2023.

In the Cryptocurrency market, whales are essential to influence price movements

According to Binance, Ethereum outperformed Bitcoin during bull markets. However, this correlation began to fade in 2023 as Ethereum and other digital assets struggled mightily to survive as Web3, DeFi and NFTs were put in a difficult spot. Regulations surrounding the cryptocurrency industry, a lack of retail and institutional investors, and growing interest in US dollar-backed stablecoins have affected the overall attitude of buyers towards Ethereum. According to the Cointelegraph, Bitcoin’s market dominance has reached 54%, the highest in the last 30 months, and it is likely to remain strong over the coming year before the next halving.

Either way, crypto whales are sure that Ethereum is a good investment and are trying to turn the game to their advantage. According to on-chain data, Ethereum registered around 5,700 large transactions in October, setting a new record and heralding the entry of wealthy corporate investors into the cryptocurrency market. A single action taken by a crypto-whale, whether a buy, sell or strategic hold, has the power to set in motion a cascade of reactions throughout the market. Whales can be a problem because they lower liquidity, the coins sit 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 thus can influence the market through their trading actions. As a rule of thumb, anyone who owns at least 10% of Ethereum can be considered a whale. Since transactions are transparent to anyone on the blockchain, it is possible to identify significant transfers. Twitter is a popular place to find crypto whales because investors usually tweet about their tactics and financial knowledge. It is not a good idea to take advice from others because they can manipulate the market to influence the price of Ethereum.

Bitcoin whales and Ethereum whales are not the same in that the former accumulates and the latter disposes of coins. If the whales provide much-needed market liquidity, investors can make quick transactions without destabilizing Ethereum, as there are enough buyers willing to buy or trade. The increase in the number of large Ethereum transactions may indicate that prices may rise explosively over the next days or weeks. The Ethereum price could reclaim $2,000 by the end of the year due to lower liquidity. Only time will tell if Ethereum will sustain its bullish momentum or if new lows are on the horizon.

There are compelling reasons to follow crypto whales

Traders and investors constantly monitor the Ethereum entering and exiting cryptocurrency exchanges in an effort to identify new and emerging trends and predict the price movement of Ethereum. When a digital asset moves to an exchange in significant quantities, a sell-off is expected to occur, causing the price to drop. Alternatively, if cryptocurrency moves from exchange to wallet, the resulting price will be higher. Crypto tracking can be done on any wallet, but mainly on whale addresses because their actions affect price movements. Tracking crypto whales wallets helps to understand market sentiment and gain valuable information.

Given their influence, it is necessary to observe, monitor and keep a continuous record of crypto-whales’ on-chain activity to inform your trading decisions. On-chain activity takes precedence over price action, meaning that by studying the transactions of an individual or an organization, you can gain insight into how the cryptocurrency market will move. Crypto whales have more experience and information compared to retail investors, but that doesn’t mean they always make the right choices. Likewise, whale activity is an indicator of market trends, but there is no guarantee whatsoever that Ethereum will be successful. More often than not, professional traders turn to crypto whale tracker platforms.

What is the realistic price prediction for Ethereum?

As mentioned earlier, Ethereum is expected to reach $2,000 in November due to intense buying pressure. Big investors have been involved since the beginning, so Ethereum could be one of the main gains. Ethereum attracts a growing number of sophisticated buyers who possess excellent information about prices and volatility. It is 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 increases the chance of short-term movements.

The recent movement of crypto whales has not had an impact on price, at least not yet. Most likely, Ethereum will continue its upward trajectory, but for now it is 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 is rare to see it exceed 70. On the other hand, the indicator regularly 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 things considered, Ethereum seems to be in a recovery phase, after massively underperforming Bitcoin in 2023. Indeed, Ethereum lacks Bitcoin’s recent performance, but analysts remain optimistic about its performance and enter the demand zone. It doesn’t seem to be moving towards any support, but is moving above resistance. Ethereum price forecasting is challenging due to volatility and dynamics, which means that it is possible to predict price movement only to a certain extent.