Here is a proof from N.S Mendelsohn, An application of a famous inequality, Amer. Math. Monthly 58 (1951), 563.
Let
$a_n = (1+\frac1n)^n$
and
$b_n = (1+\frac1n)^{n+1}$.
We will prove that $a_n$ is an increasing sequence and
$b_n$ is an decreasing sequence.
Since $a_n < b_n$, this implies for any positive integers $n$ and $m$
with $m < n$ that $a_m < a_n < b_n < b_m$.
We use the AM-GM inequality in the form
$$\left(\frac{v_1+v_2+...v_n}{n}\right)^n > v_1v_2...v_n$$
(all $v_i$ positive), with equality if and only if all the $v_i$ are equal
(this allows us to avoid the use of n-th roots).
For $a_n$, consider $n$ values of $1+\frac{1}{n}$
and $1$ value of $1$.
By the AM-GMI, $$\left(\frac{n+2}{n+1}\right)^{n+1} > \left(1+\frac1n\right)^n$$
$$\left(1+\frac1{n+1}\right)^{n+1} > \left(1+\frac1n\right)^n$$
$$a_{n+1}> a_n$$
$$a_n < a_{n+1}$$
For $b_n$, consider $n$ values of $1-\frac1n$ and $1$ value of $1$.
By the AM-GMI,
$$\left(\frac{n}{n+1}\right)^{n+1} > \left(1-\frac1n\right)^n$$
$$\left(\frac{n+1}{n}\right)^{n+1} < \left(\frac{n}{n-1}\right)^n$$
$$\left(1 + \frac1n\right)^{n+1} < \left(1 + \frac1{n-1}\right)^n$$
$$b_n < b_{n-1}$$
$$b_n > b_{n+1}$$
Therefore,
$$a_n < b_n \le b_1 = \left(1 + \frac11\right)^2 = 4$$
$$a_n < 4$$