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Ethereum (ETH) Price Outperformed Bitcoin in November –Will it Happen Again?

By:
Ibrahim Ajibade

Ethereum price looks set to November above the $2,020 mark, outperforming Bitcoin by more than 5%. Can ETH extend the winning streak over BTC in December?

Ethereum (ETH) Price Analysis

In this article:

Price Insights:

  • Ethereum (ETH) price looks set to close November above the $2,020 mark, outperforming Bitcoin by more than 5%.
  • Ethereum has experienced Rising Volatility and a significant increase in market liquidity as the bulls look set to push for a positive close to 2023. 
  • Technical indicators suggest that the major mid-to-long-term ETH price resistance is around the $2,500 area

Ethereum (ETH) price looks set to November above the $2,020 mark, outperforming Bitcoin by more than 5%. Some key on-chain indicators suggest ETH could extend its winning streak over BTC in December 2023 as well. 

Ethereum Volatility Could Attract Billions from Swing Traders

Ethereum price grew 13% in November outperforming Bitcoin’s 8% Blackrock’s official filing for spot ETH ETF (Ethereum-based Exchange Traded Fund) was one of the major growth catalysts for Ethereum price in November. 

However, as the media hype surrounding ETFs begin to wane, on-chain data shows that this Ethereum price volatility has exceeded Bitcoin’s. This could attract swing traders and short-term day traders to invest more in ETH than BTC in the December as well. 

According to IntoTheBlock, the 30-day Average Intra-Day Volatility for ETH is currently higher than Bitcoin’s. The chart below shows that Ethereum’s Average Volatility score is currently at 0.45%. In comparison, the Bitcoin’s score stands at 0.32%.

Ethereum (ETH) Price Volatility Trends vs. Bitcoin, November 2023. Source: IntoTheBlock
Ethereum (ETH) Price Volatility Trends vs. Bitcoin, November 2023. Source: IntoTheBlock

The Average Intra-Day Move is an important financial metric, that tracks changes in price volatility of a specific cryptocurrency within a given period. 

The chart above indicates that, in the last 30-days, ETH has experienced a relatively higher volatility, compared to Bitcoin. This could make ETH more attractive to swing traders looking to book profits in the short-term.

An increase in volatility can be bullish for Ethereum price in December ahead for two major reasons. 

  • Firstly, large price movements and higher volatility often present trading opportunities, allowing traders to capitalize on market fluctuations and potentially generate profits.
  • Secondly, heightened volatility can contribute to a more dynamic market environment, increased liquidity. 

If these thesis holds, the increased volatility in Ethereum markets could help to sustain its upward price momentum and outperform Bitcoin again in December. 

Ethereum Price Forecast: Clearing $2,500 Could Trigger Bigger Gains 

From an on-chain standpoint, Ethereum price looks set to generate momentum to outperform Bitcoin for the second consecutive month. 

However, for the bulls to validate this prediction, they must first breakdown the historically significant resistance level at $2,500.

The Global In/Out of the Money (GIOM) data, which groups the current ETH holders according to their entry prices, also confirms this prediction.

It shows that 2.99 million current holders had bought 3.11 million ETH the last time price crossed $2,500. Having held at a loss for 2 years, these investors could now be tempted to book profits, once ETH price approaches their break-even point again. 

But if Ethereum price can clear that resistance, it could trigger a much larger upswing toward $3,000. 

Ethereum (ETH) Price Prediction | GIOM data | Source: IntoTheBlock
Ethereum (ETH) Price Prediction | GIOM data | Source: IntoTheBlock

On the flip side, the bears could invalidate that positive prediction if ETH price dips below $1,800. But, in that case, the 7.31 million holders that bought 7.37 million ETH at the average price of $1,862 could offer significant support. 

If those investors HODL firmly, it is unlikely that Ethereum will drop below $1,800 in the weeks ahead.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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