Ethereum price targets $3,700 due to surge in ‘smart money’ interest

Ethereum (ETH) has been strong over the past two weeks, rising 30% from November 4th to November 19th.

The rally saw the largest altcoin by market capitalization surpass $3,000 for the first time since August 2.

Although bullish momentum has slowed over the past few days, on-chain data and technical setup show that ETH still has more upside.

Increasing network activity supports Ether price

Ether’s strength over the past two weeks has been accompanied by strong increases in both daily active users and transaction numbers.

According to Glassnode data, the number of daily active addresses (DAA) on Ethereum has been increasing over the past month, from 377,065 on October 27 to 487,941 on November 19.

This suggests a clear trend of increasing participation across multiple chains within the ecosystem, including the Ethereum mainnet, Polygon, Arbitrum, Optimism, xSync, and Base.

Transaction numbers also reflect this growth, with daily Ethereum transactions reaching 1.29 million on November 15, up from 962,160 on October 27.

This rapid increase in trading volume signals not only active trading but also increased use of decentralized applications, from decentralized finance (DeFi) to gaming and more. Accordingly, the total value locked in Ethereum (TVL) has increased by 25% since November 5.

ETH smart money sentiment is rising

Sentiment toward ETH has shown increased interest in smart money (capital managed by skilled individuals or high-net-worth companies, often referred to as “whales” in the cryptocurrency world).

Data shared by Market Prophit shows that the general public is slightly optimistic about Ether, with a score of 0.06. This indicates little enthusiasm among retail investors.

Smart money, on the other hand, expressed very positive sentiment, with a score of 2.28 out of 5, with a high of 2.28. This signals significant confidence from experienced investors, which could signal an upward move in the price of ETH in the near term.

relevant: New Ethereum whales have arrived, but will their accumulation send ETH above $3.5K?

Ethereum’s U-shaped pattern looks set to push up to $3,700.

ETH price action led to the formation of a 4-hour U-shaped recovery chart pattern.

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

A decisive close above this level is likely to push the ETH/USD pair towards $3,735, a bullish target in a common pattern that represents gains of over 20% from current prices.

Conversely, a decline from $3,100 could lead to a retest of the U-shaped bottom at around $3,000.

According to data from IntoTheBlock, this level acts as strong immediate support for Ethereum, as about 3.1 million ETH were previously purchased from about 3 million addresses.

Meanwhile, Ether faces strong resistance near the $3,200 level, where it previously gained about 6.1 million ETH from 4.25 million addresses.

To complete the U-shaped pattern, the ether needs to overcome this barrier.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.