Ethereum Whales’ On-chain Activity Signal Bullish Sentiment

• Ethereum trading volume has surged 21% in the past 24 hours.
• The Ethereum network records a six-month high in transaction volumes.

Ethereum, the second-largest cryptocurrency by market capitalization, is experiencing some challenges in maintaining its recent bullish momentum. ETH bulls reemerged in the final week of October, propelling the price to reach a four-month high of $1,912 yesterday. However, over the past 24 hours, Ethereum has encountered high volatility, resulting in a 0.81% decline, with the price currently at $1,876.

During this same 24-hour period, the trading volume surged by 21%, reaching $8 billion. Notably, recent data has shown a consistent trend of assets leaving cryptocurrency exchanges, surpassing the inflow of assets.

A significant development involves a notable Ethereum whale who has been actively withdrawing ETH from the Binance exchange. According to data from Etherscan, this whale withdrew 8,968 ETH on November 4th and an additional 8,618 ETH on November 5th.

Further analysis of Ethereum’s whale transactions, involving amounts exceeding $100,000 and $1 million, has revealed a substantial increase in activity. Transactions exceeding $100,000 total 179, signaling growing interest among high-value investors.

Moreover, the Ethereum network has witnessed a remarkable surge in transaction volumes, reaching a six-month high. Over the past week, the Ethereum mainnet settled over $213 billion in transactions, highlighting a robust uptick in on-chain activity. Analysts are optimistic that these indicators are setting the stage for a significant rally in the coming year.

What Lies Ahead for Ethereum Price?

A closer look at Ethereum’s current price movements reveals several bullish signals. The 9-day exponential moving average (EMA) has risen above the current trading price, settling at $1,835. Additionally, the daily relative strength index (RSI) stands at 69, suggesting that Ethereum is in overbought territory.

If the price manages to surpass the $1,890 level once again, it is likely to test the $2,000 resistance level. However, if bears exert downward pressure and drive the price below $1,763, ETH may head towards the $1,635 support level. A further decline could see the price testing the $1,550 support area.