Over the last two weeks, Ethereum (ETH) has demonstrated significant strength, rising by 30% between November 4th and 19th. This rally saw the largest altcoin by market capitalization break above $3,000 for the first time since August 2nd.
Growing Network Activity Supports Ether Price
The bullish momentum of ETH over the last two weeks has been accompanied by a robust increase in both daily active users and transaction counts. According to Glassnode data, the number of daily active addresses (DAAs) on Ethereum has been increasing over the last month, rising from 377,065 on October 27th to 487,941 on November 19th.
- Daily Active Addresses on Ethereum
- Glassnode
- Data shows a clear trend of rising engagement across multiple chains within the ecosystem
Transaction counts also mirror this growth, with Ethereum daily transactions reaching 1.29 million on November 15th, up from 962,160 on October 27th.
- TVL and Daily Transactions on Ethereum
- DeFi Llama
- This significant increase in transaction volume indicates not just active trading but also an increase in decentralized application usage
As such, the total value locked (TVL) on Ethereum has increased by 25% since November 5th.
ETH Smart Money Sentiment on the Rise
Sentiment around ETH showed increased interest from smart money — capital managed by experienced individuals or high net worth entities. Data shared by Market Prophit reveals that smart money held a highly positive sentiment at a score of 2.28, indicating significant confidence from experienced investors.
- Smart Money Sentiment
- Market Prophit
- This suggests that upside price movements for ETH in the near term may be likely
Ether’s U-Shaped Pattern Points to a Rise to $3,700
ETH price action has led to the formation of a U-shaped recovery chart pattern in the four-hour timeframe. If the price stays within this formation, it could move toward the neckline of the U-shaped chart pattern at $3,376.
- U-Shaped Pattern
- A decisive close above this level will likely push the ETH/USD pair toward the bullish target of the prevailing pattern at $3,735
- This represents more than 20% gains from the current price
Conversely, a retreat from $3,100 could see a retest of the U-shaped bottom at around $3,000. This level acts as a robust immediate support for Ether on the downside.
Ether Faces Stiff Resistance Around $3,200
Meanwhile, Ether faces stiff resistance around the $3,200 level, where approximately 6.1 million ETH was previously acquired by 4.25 million addresses. To complete the U-shaped pattern, Ethereum would be required to overcome this barrier.
Important Note
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
