Today, there is a significant surge in the value of Ethereum, with an increase of over 4% to reach around $3,200. This rise in Ethereum’s price reflects a broader trend in the cryptocurrency market, which has seen a 3.5% surge in total market cap.
One of the main drivers behind Ethereum’s climb today is the shift of capital from Bitcoin. As Bitcoin experiences a slight downturn, with its value marked at $64,854, Ethereum benefits. The ETH/BTC ratio has seen a boost of about 2.5% in the last 24 hours, reaching 0.048 BTC by April 21. Alongside this shift, the Ethereum Dominance Index (ETH.D), which measures Ethereum’s market strength against other cryptocurrencies, has increased by over 1%.
This rally is not sudden but rather part of a rebound that started on April 19, coinciding with Bitcoin’s fourth halving. Since this event, Ethereum’s relative strength compared to Bitcoin has grown, with the ETH/BTC ratio ascending by approximately 3% and ETH.D by about 0.75%.
Similar trends have been observed in previous post-Bitcoin halving periods. For example, after the second halving in July 2016, Ethereum surged by as much as 64% against Bitcoin. After the third halving in May 2020, it nearly doubled in value relative to Bitcoin. This pattern suggests that investors may be reallocating their investments to Ethereum, believing that the anticipated increase in Bitcoin’s price due to the halving has already been accounted for.
The current surge in Ethereum’s price is also supported by actions from its whales, or large-scale investors. Data from Glassnode shows that the amount of Ethereum held in addresses containing between 1,000 and 10,000 ETH has increased in the past two weeks. Additionally, those holding between 10,000 and 100,000 ETH are also on the rise, indicating a strong return of confidence among heavy Ethereum investors.
From a technical standpoint, Ethereum’s price support mechanisms are showing strength. The cryptocurrency has recently tested the lower trendline of its descending channel pattern, which closely aligns with the 0.5 Fibonacci retracement level at around $2,800 and its 200-day exponential moving average (EMA) near $2,700. Traders view these technical indicators as favorable zones for purchasing Ethereum, indicating strong market support.
Furthermore, adding to Ethereum’s intrigue, a dormant Ethereum wallet that had been inactive for nearly nine years has suddenly become active. This wallet, from Ethereum’s pre-mine phase before its official launch in 2015, initially contained 197 ETH valued at about $61. Today, this stash is worth approximately $622,685. The activation of this wallet has sparked widespread speculation about the identity and motives of the wallet’s owner, suggesting a possible strategic move by an early Ethereum adopter who may have rediscovered lost keys or decided that now is the opportune time to re-enter the market.
All of these factors come together to paint a comprehensive picture of why Ethereum is currently experiencing an unexpected rally. Each component contributes to a bullish outlook for Ethereum in the cryptocurrency community.
