Ether price has risen 114% since March 13 and may be about to rise further. Increased Ethereum blockchain activity and the upcoming release of ETH 2.0 appear to be driving the price of Ether, and these factors could also benefit Bitcoin's price action.
Unlike Ether ( ETH ), the price of Bitcoin ( BTC ) is showing a technically bearish structure in the form of a lower high. This means that the daily BTC candle closed at a lower point from where it was earlier this month. Typically, lower highs in a high time frame such as the daily chart can leave an asset vulnerable to a correction.
Ether sets highest highs
Ether currently shows a price action that differs from that of Bitcoin. The higher altcoin has shown a higher peak, as the most recent daily candle closed significantly higher than in early February.
Daily ETH USD Chart Source: Tradingview
Cryptocurrency traders have said that the strength shown by Ether price action could support the whole market momentum and prevent Bitcoin from showing another downtrend.
Traders say Ether is pushing Bitcoin up this time
Bitcoin's price rose around 4% in the past 24 hours, despite the fact that the lower high pattern failed to ease selling pressure on the dominant cryptocurrency.
According to cryptocurrency trader Chase NL, the general sentiment in the market is that Ether is positively affecting Bitcoin's short-term price movement.
In the short term, there could be two scenarios as a result of the contrasting trend in Ether and Bitcoin prices. NL Chase said the slow pace of Bitcoin could make Ether down to test lower brackets, or strong momentum might prevent BTC Ether will show a setback strong .
The merchant stated :
Can Ether bounce back enough for BTC to be back above the annual open? Or will the slowness and inability of BTC to close above the annual opening will cause the ETH to drop again? This will most likely establish my “bias” for the next few days / week. ”
Cryptocurrency analyst Scott Melker similarly stated that he remains “more optimistic about Ether than about Bitcoin”, acknowledging Ether's optimistic pricing structure.
ETH 2.0 hype and growing network usage support Ether's advance
Ether's strong positioning could be due to the strong and prolonged recovery in early February, but when the cryptocurrency market plummeted March 12, Ether fell more sharply than most assets. While BTC showed a 50 percent drop, Ether fell almost 70 percent to $ 90.
BTC and Ether performance from all-time highs. Source: athcoinindex
From its all-time highs, Ether is down around 87% and BTC is down 63% in the same time period.
Ether's oversold setup and ETH 2.0's imminence are the two fundamental factors supporting altcoin's recent bullish move.
The growing demand for stablecoins, many of which are based on Ethereum smart contracts, also led to the total amount of value transferred on the network reaching parity with Bitcoin, improving a key fundamental Ethereum figure.
Cryptocurrency researcher Ryan Watkins said :
Stablecoins now represent 80% of the daily transfer value on Ethereum, and are used for transfers significantly higher on average than Bitcoin. Stablecoins simply have a better market for products to transfer value between exchanges, one of the dominant use cases today. ”
It remains to be seen whether the notable improvement in Ethereum network activity and anticipation of ETH 2.0 is enough to prevent a short-term market wide correction, as some traders warn that the fall of a major trend line of BTC will likely result in a correction.