Ethereum price could reach $2,500 as whale demand increases.

Ethereum price strengthened last week from around $1,750 to $1,850. The on-chain analysis points to the key parameters that will show how large investors will increase the price of ETH to $2500 in November.

Ethereum price has lost ground against Bitcoin (BTC) since last week's crypto market rally. On-chain analysis shows how increased whaling demand will impact ETH price action in November 2023.

Ethereum is attracting a large number of well transactions.

Amid last week's crypto market rally, Bitcoin ran to a new peak of $35,300 by 2023, giving Ethereum a boost. In terms of monthly performance, BTC is up 30% since September 30, compared to ETH's modest 8% gain.

However, on-chain data trends show that large institutional investors are bidding on the performance scoreboard to favor Ethereum in November.

According to IntoTheBlock, Ethereum recorded a record 5,700 large transactions on October 24. In particular, ETH's large trading volume has been more than 1,500 in the following consecutive days.

In crypto terms, well transactions refer to the number of daily transactions that exceed $100,000 in nominal value.

This constant increase in the number of ETH is a strong bullish sign that heralds the presence of corporate investors with deep pockets in the Ethereum markets.

Since the rally started in mid-October, the timing shows that big investors have been actively participating. If whales continue to provide much-needed market liquidity, ETH could be one of the biggest gainers during the next downturn.

Whales have dominated the markets for more than two weeks.

The Coinbase Premium Index is another on-chain indicator that highlights the bullish tendency of Ethereum whales at the moment. The CryptoQuant chart below shows that the Ethereum Coinbase Premium Index has been positive since October 14th.

The Coinbase Premium Index shows the percentage difference in prices quoted on Coinbase compared to the Binance spot markets.

Strategic investors consider it an important indicator because while Binance spot trading is dominated by retail traders, the majority of traders on Coinbase Pro are US-based corporate entities and high-networth investors looking to trade in a more regulated landscape.

Therefore, positive values ​​of the Coinbase Premium Index indicate a strong buying pressure among whale investors trading on Coinbase Pro.

A closer look at the historical data shows that March and May 2023 were the last two occasions when the Ethereum Coinbase Premium Index showed positive values ​​for up to 20 consecutive days. And both times, the price of ETH topped the $2,000 barrier.

As of October 30, the current run has reached 16 days. So, if the whales continue their dominance for another week, the price of ETH could reach $2,500 in November.

ETH Price Prediction: Road to $2,500?

From a chain perspective, long-term demand among whales could push the ETH price towards $2,500 in the coming weeks. Global In/Out Value of Money (GOM) data, which categorizes ETH holders according to their entry price, also confirms that bullish narrative.

This shows that the selling wall of $2,100 is the main obstacle for the price of Ethereum on the way to $2,500. As shown below, 9.1 million addresses bought 38.84 million ETH at an average price of $2,102. Considering that this is close to the end of the current year, the resistance may cause a pullback.

But if bullish whales intensify their buying pressure, ETH price could break to $2,500 as predicted.

On the downside, the bears will be angled to retest the $1,500 territory. However, the first support line at $1,680 may prove challenging in this regard.

As seen above, 5.86 million holders bought 11.06 million ETH at an average price of $1,687. Given the current positive market momentum, they are likely to be encouraged to HODL.

But failure to defend that support level could open the door to a reversal toward $1,500.