Ether price rises due to capital shifts post-Bitcoin halving, whale activity, and strong technical support levels.
Ether (ETH) is leading today’s cryptocurrency market rally with a notable 4.25% increase in price, surpassing $3,200 as of April 21. This surge comes amidst a broader market uptrend that has seen the total crypto market capitalization climb by 3.5%. Today’s performance highlights Ether dominance, especially in comparison to Bitcoin (BTC), after the recent Bitcoin halving event. The subsequent sections explore the dynamics fueling Ether’s rise against the broader market and Bitcoin specifically.
Capital Rotation Boosts Ether
Significant capital inflows from the Bitcoin market are driving today’s Ether gains against the U.S. dollar. The ETH/BTC pair itself rose by approximately 2.5% in the last 24 hours, reaching 0.048 BTC. The Ethereum Dominance Index, which measures Ether’s market strength relative to other cryptocurrencies, has increased by over 1% during the same period. Since Bitcoin’s fourth halving on April 19, both the ETH/BTC ratio and Ethereum Dominance have seen gains of about 3% and 0.75%, respectively.
Historically, Ether tends to attract increased capital from the Bitcoin market shortly after each Bitcoin halving. Following the second Bitcoin halving in July 2016, the ETH/BTC pair surged by 64%, and after the third halving in May 2020, it nearly doubled. This recurring pattern indicates a shift in investor focus post-halving, as the anticipated Bitcoin price increases are usually already priced in, prompting investors to reallocate funds to other cryptocurrencies like Ether in search of new growth opportunities.
Ethereum Whales Make a Comeback
Ether’s recent price movements also coincide with increased accumulation by major investors, commonly known as whales. Data from Glassnode reveals that addresses holding between 1,000 and 10,000 ETH have seen a rise in Ether supply over the past two weeks. Similarly, balances between 10,000 and 100,000 ETH have also shown significant rebounds, suggesting a renewed interest among large-scale investors. This trend of accumulation often precedes substantial price increases, as evidenced by today’s market behavior.
Further supporting Ether’s price increase is its technical performance. The cryptocurrency recently tested the lower trendline of its descending channel pattern, which doubles as a support level. Near this trendline, ETH also aligns with its 0.5 Fibonacci retracement line at approximately $2,820 and its 200-day exponential moving average at about $2,725. These technical indicators collectively make a compelling case for traders to view the current levels as an attractive buying opportunity.