Ethereum price targets $3.7K on soaring ‘smart money’ interest

As a seasoned crypto investor who’s been through the bull and bear markets alike, I must say that the recent surge of Ether (ETH) has caught my attention. After all, breaking the $3,000 mark for the first time since August is no small feat. The robust increase in daily active users and transaction counts on Ethereum, along with the growing interest from smart money, paints a promising picture for ETH’s future price movements.

Over the past fortnight, Ether (ETH) has shown resilience and experienced a significant increase of approximately 30%, climbing from November 4th to November 19th.

In this gathering, the top altcoin according to market value surpassed $3,000 for the initial time since August 2nd.

Despite a recent dip in its upward trajectory, on-chain information and its technical layout indicate that Ethereum might still have room to grow further.

Growing network activity supports Ether price

Over the past fortnight, Ether’s optimistic trend has been matched with a substantial surge in the number of daily active users as well as transactions being processed.

Over the past month, there’s been a steady growth in the number of daily active Ethereum addresses. As of October 27, there were 377,065 active addresses, but by November 19, that figure had risen to 487,941, as reported by Glassnode.

It appears that there is a strong pattern of increasing involvement on various networks within this system, with the Ethereum mainnet, Polygon, Arbitrum, Optimism, xSync, and Base all seeing an uptick in participation.

As a researcher, I’ve noticed that the number of transactions on Ethereum has been mirroring its growth. For instance, daily transactions surged to an impressive 1.29 million on November 15, marking a significant increase from the 962,160 recorded on October 27.

The surge in transaction activity suggests not just heightened trading activity but also a rise in the utilization of decentralized apps, spanning from DeFi to gaming and beyond. Consequently, the total value locked (TVL) on Ethereum has grown by 25% since November 5.

ETH smart money sentiment on the rise

There’s been a surge in attention towards Ethereum (ETH) from wealthy investors and investment firms, who are known as “whales” in the crypto sphere due to their massive holdings. This suggests that these seasoned financial players see potential in ETH.

According to Market Prophit’s data, ordinary investors showed only a slight optimism towards Ether, as their collective sentiment score was 0.06, suggesting a low level of excitement or anticipation from this group.

Conversely, seasoned investors expressed strong optimism with a rating of 2.28 (maximum being 5). This indicates high confidence among experts, potentially signaling potential increases in ETH’s price in the short-term.

Ether’s U-shaped pattern points to a rise to $3,700

In a simple, conversational tone: The movement of Ethereum’s price over the past few hours has created a chart pattern that resembles the letter ‘U’ within a four-hour timeframe. This is often referred to as a U-shaped recovery pattern.

Should the cost continue to remain within this structure, it may potentially trend towards the neckline of the inverted U-shaped chart pattern at approximately $3,376.

If the ETH/USD pair manages a strong surge beyond its current level, it could well propel us towards the potential high of the existing pattern, which stands at approximately $3,735. This move would translate into a substantial increase of over 20% from our present price point.

Conversely, a retreat from $3,100 could see a retest of the U-shaped bottom at around $3,000.

At this point, a significant amount of Ethereum (around 3.1 million ETH) was earlier purchased by approximately 3 million different wallets, serving as strong immediate protection on the downside. This information is derived from data provided by IntoTheBlock.

Currently, the $3,200 area is proving challenging for Ether as it was previously controlled by about 4.25 million different addresses who collectively owned around 6.1 million Ether.

Ether would be required to overcome this barrier in order to complete the U-shaped pattern.

2024-11-19 20:00

Growing network activity supports Ether price

ETH smart money sentiment on the rise

Ether’s U-shaped pattern points to a rise to $3,700

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