Ethereum recently demonstrated a significant trading pattern on the charts, reflecting both investor caution and bullish potential.
After taking liquidity below a key level, Ethereum’s price action surged, breaking through the resistance area near $2,650, and rapidly approaching a crucial zone around $3,200.
The chart reveals a potential resistance zone set between $3,146.95 and $3,210.05, which traders are closely monitoring.
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If Ethereum manages to sustain its momentum and decisively break above $3,200, the path could be clear for an advance towards the $3,700 mark.
This price point represents a significant resistance area, potentially indicating the upper boundary of the current bullish momentum.
Ethereum price action
Conversely, if Ethereum fails to hold above these levels, it may retrace towards the $3,000 mark. This area served as a foundation for the recent rally and could become a crucial support zone in case of a pullback.
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The recent trading volume and price spikes suggest a growing interest and speculation among traders.
The market’s next move will likely hinge on Ethereum’s ability to maintain support above $3,200 or face resistance that could stall the current rally.
As investors watch these developments, the coming period could prove pivotal for Ethereum’s price trajectory.
Ethereum Ecosystem Daily Users and Transactions
Recent data from the Ethereum ecosystem indicates a robust increase in both daily active users and transaction counts, signaling the network’s continued growth and vitality.
The charts show a clear trend of rising engagement across multiple chains within the ecosystem, including Ethereum mainnet, Polygon, Arbitrum, Optimism, xSync, and Base.
As of the third quarter of 2024, Ethereum boasted approximately 2.7 million daily active users, with xSync trailing closely at 2.7 million.
This marks a significant uptick from previous quarters, demonstrating sustained user interest and expanded usage.
Transaction counts mirror this growth, with Ethereum transactions reaching a staggering 1.048 billion in the same period.
Ethereum ecosystem daily users and transactions | Source: Token Terminal
This significant volume indicates not just active trading but also an increase in decentralized applications usage, from DeFi to gaming and beyond.
Despite some voices in the crypto community suggesting a decline in Ethereum’s relevance, the data tells a different story.
Ethereum’s network effects continue to accumulate, underscoring its foundational role in the digital asset ecosystem.
This ongoing expansion and user engagement present a bullish outlook for Ethereum, contradicting claims of its obsolescence and reaffirming its status as a cornerstone of blockchain innovation.
Crowd vs Smart Money sentiment
Also the sentiment gauged for ETH showed a common perspective between the general crowd and the ‘smart money’ or more informed investors.
According to the latest sentiment data, the crowd held a bullish stance on Ethereum with a score of just 0.06, indicating minimal enthusiasm or pessimism among regular investors.
On the other hand, smart money sentiment was highly positive, marked at 2.28 on a scale that peaks at 5, suggesting significant confidence from seasoned investors. This bullish outlook from smart money may signal upcoming price movements.
$ETH Sentiment
CROWD = Bullish 🟩
MP | #SmartMoney = Bullish 🟩 #Ethereum
Check out sentiment and other crypto stats at https://t.co/HQDyBNuzek#crypto #cryptotrading #CryptoX pic.twitter.com/az8oLQMGyt— Market Prophit (@MarketProphit) November 17, 2024
Given the optimistic sentiment among experienced investors, there’s a growing anticipation that ETH could not only revisit the $3,000 price level but also push towards a higher target of $3,700.
The strong confidence from smart money could reduce the likelihood of Ethereum dropping to lower support levels and instead, may fuel a more immediate ascent towards these higher valuations.
The divergence in sentiment suggests a potential for ETH price to make significant gains in the near term, backed by smart money’s robust conviction.