Ethereum price had a relatively strong performance in October after consolidating for months. ETH/USD price soared to a high of 1,663, which was the highest level since September 13. At its peak, Ethereum was up by about 40% from its lowest level in October. So, what next for ETH in November?
ETH October review
Ethereum price has been in a strong bullish trend in the past few weeks. The rebound happened as investors focused on the likelihood that the Federal Reserve will pivot in the coming months. This also explains why other cryptocurrencies like Bitcoin and Ripple made a strong bullish breakout.
ETH price rebound also coincided with a sharp rebound in American and global stocks. The Dow Jones and other indices like the Nasdaq 100 and S&P 500 also rebounded. They rose by more than 10% during the month, their best performance since 2020.
At the same time, the US dollar index dropped from $115 to about $109. Historically, Ethereum has an inverse relationship with the US dollar. The greenback slipped against most currencies, including the British pound and euro.
Still, Ethereum’s ecosystem is not doing well. Recent data show that Ethereum’s network handled over $275 million worth of NFTs in October after handling $354 million worth of coins in the previous month. Indeed, these transactions have been slipping afer peaking at $3.2 billion in May, according to data compiled by CryptoSlam.
The volume of Ethereum’s DeFi made a slow rebound. Data compiled by DeFi Llama shows that the volume of NFTs rose by more than 10% to over $52 billion.
Another big catalyst for Ethereum price was the launch of Shanghai’s Shandong testnet. This is the biggest Ethereum upgrade since the recent merge.
Ethereum price prediction
November is usually a big month for cryptocurrencies. As you recall, Ethereum’s price soared to an all-time high in November last year. On the four-hour chart, the coin moved above the important resistance at $1,400, which was the highest point on September 27. It has then moved above the 25-day and 50-day moving averages.
Ethereum’s volume and Relative Strength Index (RSI) have made a bearish divergence. Therefore, there is a likelihood that the coin will pull back and then resume the bullish trend to $2,000. A drop below the support at $1,500 will invalidate the bullish view. The bullish view was in line with my most recent Ethereum price forecast.
