Ethereum price climbs $3.7k, targets ‘smart money’ interest

Ether (ETH) has shown strength in the past two weeks, increasing by 30% between November 4 and November 19.

The rally marked the first time since August 2 that the largest altcoin has surpassed $3,000 in market capitalization.

Although the momentum has slowed over the past few days, the onchain data and technical structure suggest that there is still more upside for ETH.

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Increasing network activity supports the value of Ether

Over the past two weeks, Ether's bullishness has been accompanied by strong increases in both daily active users and transaction counts.

According to Glassnode data, daily active addresses (DAAs) on Ethereum have increased from 377,065 on October 27 to 487,941 on November 19 last month.

This suggests a clear upward trend among several chains in the ecosystem, including the Ethereum mainnet, Polygon, Arbitrum, Optimism, xSync, and Base.

Transaction counts also reflect this growth, rising from 962,160 on October 27th to 1.29 million Ethereum daily transactions on November 15th.

This significant increase in transaction volume reflects not only active transactions, but also the use of decentralized applications from decentralized finance (DeFi) to gaming and more. As such, the total value locked on Ethereum (TVL) has increased by 25% since November 5.

ETH is increasingly making smart money sense.

The sentiment around ETH has increased from the demand for smart money – capital managed by experienced individuals or high-value entities, often referred to as “whales” in the world of cryptocurrencies.

According to data shared by Market Profit, the crowd on Ether held a slightly bullish position with a slight gain of 0.06 points, indicating enthusiasm among regular investors.

On the other hand, Smart Money maintained a strong positive sentiment at 2.28 points out of 5. This shows high confidence from experienced investors, which could indicate price movements for ETH in the near future.

RELATED: New Ethereum Whales Have Arrived, But Will Their Stocks Send ETH Over $3.5K?

Aether's U-shaped design has risen to $3,700.

ETH price action has led to the formation of a U-shaped recovery chart pattern in the four-hour period.

If the price stays in this formation, it could move towards the neckline of the U-shaped chart pattern at $3,376.

A critical close above this level could push the ETH/USD pair to a major target seen at $3,735, which would represent a gain of more than 20% from its current price.

Conversely, a pullback from $3,100 could see a U-shaped bottom retest near $3,000.

This level serves as strong immediate support for Ether as data from IntoTheBlock indicates that nearly 3.1 million ETH were previously purchased by 3 million addresses.

Meanwhile, Ether faced strong resistance around the $3,200 level, with approximately 6.1 million ETH bought earlier by 4.25 million addresses.

Ether must pass this barrier to complete the U-shaped pattern.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.