The price of ether increased today, gaining 4.25% to over $3,200 on April 21. The coin’s gains are consistent with positive trends observed in the cryptocurrency industry as a whole, which saw a 3.5% increase in market capitalization during the same time period. The current increases in Ether relative to the US dollar are mostly the result of new money entering the Bitcoin market. Remarkably, the ETH/BTC pair has increased by about 2.5% over the past day to close at 0.048 BTC on April 21. As a result, during the same time period, the Ethereum Dominance Index (ETH.D), which measures Ether’s market strength relative to the rest of the cryptocurrency market, increased by more than 1%.
These increases are a part of the upswing that started on April 19, the day of Bitcoin’s fourth halving. The ETH/BTC ratio and ETH Dominance (ETH.D) have risen by almost 3% and 0.75%, respectively, since that significant occurrence shortly after every Bitcoin halving event in the past, the Ethereum market has frequently witnessed increasing money inflows from the Bitcoin market. For instance, the ETH/BTC pair had a 64% increase after the second halving in July 2016. In a similar vein, this pair experienced an almost 100% surge during the third halving in May 2020.
This pattern indicates that, after the halving takes place, investors typically sell their Bitcoin holdings or lessen their demand for the cryptocurrency because the market has already priced in the expected price increase before the event. Because of this change in investor emphasis, alternative cryptocurrencies like Ether gain as money that was previously allocated to Bitcoin looks for fresh growth prospects in other areas of the cryptocurrency industry.
The most recent advances in ether come before a phase of consolidation among its wealthiest investors, or “whales.” The amount of Ether held by addresses with a balance between 1,000 and 10,000 ETH has surged during the last two weeks, according to data provider Glassnode.
In a similar vein, entities holding Ethereum balances between 10,000 and 100,000 ETH have also recently seen an increase in supply, suggesting that whales are returning to the Ether market.It’s interesting to note that this accumulation pattern frequently signals major price increases, like the one Ether is currently experiencing. After testing the bottom trendline of its current descending channel pattern as support, ether’s advances from today seem to be continuing.
It’s interesting to note that this support level is also close to ETH’s 200-day exponential moving average (200-day EMA; the blue wave) at around $2,725 and its 0.5 Fibonacci retracement line at about $2,820, indicating that traders view the support area as a favorable place to purchase Ether. For example, the 200-day exponential moving average (200-day EMA; the blue wave) and the 0.5 Fibonacci retracement line of ETH at about $2,820 and $2,725 are in tight alignment with the trendline support. These convergent indicators imply that traders are drawn to this support zone as a place to buy ether.