According to Cointelegraph, Ether (ETH) has shown significant strength over the past two weeks, experiencing a 30% increase from November 4 to November 19. This surge allowed the leading altcoin by market capitalization to surpass the $3,000 mark for the first time since August 2. Despite a slowdown in its bullish momentum recently, on-chain data and technical indicators suggest that ETH may still have room for further growth.
Ether's recent bullish trend has been supported by a notable rise in network activity, with both daily active users and transaction counts increasing. Data from Glassnode indicates that the number of daily active addresses (DAAs) on Ethereum rose from 377,065 on October 27 to 487,941 by November 19. This trend reflects growing engagement across various chains within the ecosystem, including Ethereum mainnet, Polygon, Arbitrum, Optimism, xSync, and Base. Additionally, Ethereum's daily transactions climbed to 1.29 million on November 15, up from 962,160 on October 27. This increase in transaction volume suggests not only active trading but also heightened usage of decentralized applications, ranging from decentralized finance (DeFi) to gaming. Consequently, the total value locked (TVL) on Ethereum has risen by 25% since November 5.
Sentiment around Ether has also seen a positive shift, particularly among smart money investors—those with significant capital and experience, often referred to as "whales" in the cryptocurrency world. Market Prophit data reveals that while the general crowd maintained a slightly bullish stance on Ether with a score of 0.06, smart money exhibited a highly positive sentiment with a score of 2.28 on a scale that peaks at 5. This indicates substantial confidence from experienced investors, potentially signaling further price increases for ETH in the near term.
Ether's price action has formed a U-shaped recovery pattern on the four-hour chart. If the price remains within this formation, it could advance toward the neckline of the U-shaped pattern at $3,376. A decisive close above this level may propel the ETH/USD pair toward the bullish target of $3,735, representing over 20% gains from the current price. Conversely, a pullback from $3,100 could lead to a retest of the U-shaped bottom around $3,000, which serves as a strong immediate support level. Meanwhile, Ether faces significant resistance around the $3,200 level, where approximately 6.1 million ETH were previously acquired by 4.25 million addresses. Overcoming this barrier is crucial for completing the U-shaped pattern. This article does not provide investment advice, and readers should conduct their own research before making investment decisions.
