“The growing adoption of decentralized finance (DeFi) and the anticipated implementation of Ethereum 2.0 could propel Ethereum (ETH) price to new heights, with experts predicting a potential surge above $2,500 in November.”
In the world of cryptocurrency, large transactions play a significant role in determining market trends and investor sentiment. These transactions refer to single trades that exceed $100,000 in value on a given trading day. Recently, there has been a sharp increase in large transactions for Ethereum (ETH), which is seen as a bullish signal.
This surge in large transactions indicates the entrance of deep-pocketed corporate investors into the Ethereum markets. Interestingly, this trend coincided with a decline in the S&P 500 stocks, prompting investors to turn towards the second-largest cryptocurrency by market capitalization. On October 24, a total of 5,700 ETH large transactions were recorded, which is the highest since March 11.
An increase in the number of large transactions is often seen as a positive sign for asset prices. It provides much-needed market liquidity and allows participants to execute trades efficiently at higher prices. Additionally, the demand from large investors creates short-term scarcity, which has historically led to price rallies. For example, back in March, ETH experienced a 44% rally to a peak of $2,100 after recording 12,400 whale transactions.
If the current trend of falling US stock prices continues, Ethereum’s price could potentially race towards $2,500 in November as more corporate investors enter the crypto markets to hedge their positions.
From an on-chain perspective, the increase in large transactions coupled with the downtrend in stock prices puts Ethereum in a prime position to break above the critical $2,500 level in November. Technical analysis indicators such as the Simple Moving Average (SMA) and Exponential Moving Average (EMA) also support this bullish stance. As of October 28, Ethereum’s EMA30 stands at $1,665.99, while the SMA30 is at $1,646. The fact that both indicators are positioned below the current price of $1,785 signifies a strong bullish sentiment in the short term.
If the bulls maintain momentum as predicted, they will face initial resistance around the $1,850 level. However, if they can successfully break through this sell-wall, the next significant obstacle on the road to $2,500 is the $2,005 level.
Overall, the increase in large transactions for Ethereum and the current market conditions present a positive outlook for the cryptocurrency’s price in the coming weeks. As more corporate investors enter the crypto markets and stock prices continue to decline, Ethereum could experience a significant rally towards $2,500.