Recently, the price of Ethereum increased by 3.5%, hitting over $3,630 on March 31. Since it reached its local low of about $3,050 more than a week ago, the price of ETH has increased by 18.75%.
Ether is still rising against the US dollar and has made significant gains against Bitcoin. Notably, the often watched ETH/BTC pair increased by almost 2.5% on March 31 to hit 0.051 BTC, indicating the possibility of a short-term capital rotation.
A notable improvement in Ether’s performance relative to the larger cryptocurrency market over the past 48 hours is evidenced by the 2.16% rise in the Ethereum Dominance Index (ETH.D) from its March 29 low. This pattern supports the increasing inflow of funds from rival altcoins into the Ether market, increasing the value of ETH relative to the dollar.
The most recent increases in ether occur before a phase of consolidation among its wealthiest investors, referred to as whales. Entities possessing between 1,000 and 10,000 ETH boosted their Ether reserves by roughly 1.15% in March, according to data provider Glassnode.It’s interesting to note that this accumulation pattern frequently signals large price increases, like the one we’re currently seeing in ETH/USD.
The funding rate for Dogecoin perpetual futures contracts was notably at its highest point since March 12 as of March 31, standing at 0.0591% per eight hours, or 1.24% per week. This suggests that the expense of maintaining long positions is steadily increasing. Meanwhile, after hitting a record high three days ago, Ether’s open interest—that is, the total amount of existing derivative contracts—has leveled off at roughly $14 billion. Traders are borrowing more to finance their long positions, anticipating an increase in the asset’s price and seeking to increase their returns, as seen by a stabilized open interest and growing funding rate.
After testing the bottom trendline of what seems to be a rising wedge pattern, ether’s price gains have emerged. The cryptocurrency has found additional support close to $3,485 at its 0.236 Fibonacci retracement level.
A rising wedge is a bearish reversal pattern that usually breaks below the lower trendline and declines by the maximum length of the wedge. Therefore, if the rising wedge pattern holds true, ETH’s price goal for April seems to be about $3,280.
On the other hand, if the price breaks above the top trendline of the wedge, ETH’s price will probably rise to above $4,000 by the end of April, moving toward the 0.0 Fibonacci retracement level.