Ether price has climbed 114 percent since March 13 and the altcoin may be on the verge of higher rallying. Increased activity on the blockchain of the Ethereum and the upcoming launch of ETH 2.0 tend to bolster the Ether price and these factors may also help the market action of Bitcoin.
Unlike Ether (ETH), the price for Bitcoin (BTC) displays a theoretically bearish structure in the form of a lower level. This indicates that the regular BTC candle closed at a lower point than where it had been than earlier this month. Usually, lower elevations will leave an asset vulnerable to correction at a high time frame like the regular map.
Ether notches higher
Ether actually displays price behavior which is distinct from Bitcoin. As the most recent regular candle closed significantly higher than in early February, the top altcoin had seen a higher height.
Cryptocurrency traders have said the resilience displayed by Ether’s price action could help the entire market momentum and prevent Bitcoin from seeing another downtrend.
Traders say this time Ether’s pushing Bitcoin up
In the last 24 hours, the Bitcoin price increased by about four percent, given the lower high trend that failed to relieve the selling pressure on the dominant crypto-currency.
The general consensus around the industry, according to cryptocurrency trader Chase NL, is that Ether has a favorable effect on Bitcoin’s near-term price movement.
In the short run, the contrasting price pattern of Ether and Bitcoin could result in two scenarios playing out. Chase NL said that the sluggishness of Bitcoin might bring down Ether to test lower supports, or that Ether’s strong momentum could prevent BTC from seeing a sharp pullback.
The trader stated:
“Can ETH rally hard enough to bring BTC back above the yearly open? Or will BTC’s sluggishness and inability to close above the yearly open bring ETH back downwards? This will set my ‘bias’ for the coming days/week most likely.”
Cryptocurrency analyst Scott Melker similarly reported that he remains “more bullish on Ethereum than Bitcoin,” noting Ether’s favorable price structure.
ETH 2.0 hype and growing network use help the advance of the Ether
Possibly due to the strongly extended rally from early February. Ether’s good positioning may be attributable but when the crypto market collapsed on March 12, Ether dropped harder than other properties. Although BTC saw a decline of 50 percent, Ether fell to $90 by almost 70 percent.
Ether is down by around 87 percent from its record highs. And BTC has fallen by 63 percent in the same time frame.
The oversold setup of Ether and the imminence of ETH 2.0 are the two fundamental factors. That helps the altcoin’s recent upside leap.
The growing demand for stablecoins, many of which are built on top of Ethereum’s smart contracts. It also contributed to the total amount of value transferred to the network hitting parity with Bitcoin. Strengthening Ethereum’s main fundamental metric.
Researcher for the crypto-currency Ryan Watkins said:
“Stablecoins now account for 80% of daily transfer value on Ethereum. And are used for significantly larger transfers on average than Bitcoin. Stablecoins simply have better product market fit for transferring value between exchanges, one of today’s dominant use cases.”
Whether the significant increase in Ethereum’s network operation. And the expectation for ETH 2.0 is enough to avoid a market-wide correction in the short term remains to be seen. As some traders warn that a correction is likely to result from the break of a big BTC trendline.