Ether’s price sprung up for the first time in nearly a month against Bitcoin and this is an indicator of its technical momentum gaining strength. For the first time in 23 days, Ether’s (ETH) price has burst forth in its Bitcoin (BTC) pair. This came after Visa made a high-profile announcement to use one of the stablecoins based on the Ethereum blockchain, USDC.
Even if there was a strong technical breakout witnessed by ETH/BTC, this new upwards trend came from other fundamental catalysts that will help keep the short-term bull case for ETH afloat.
Crypto Enthusiasts Believe Ethereum’s April Performance Will Surpass Bitcoin’s
As per Rekt Capital, a pseudonymous trader, since January 2021, Ethereum has been on the path to leap out of the triangle market structure synonymous with this decentralized, open-source blockchain. The ETH/USD chart reveals that there was a large rejection in the resistance area that made these break out attempts impossible.
The chart above obtained from Tradingview.com reveals the one-day candlestick and how ETH has made three attempts since January 2021 to break out of the resistance area.
The trader claimed that ETH was on the path to break out from its triangle but its path was taking it towards the resistance zone.
Broke out from its triangle
But it has rallied straight into red resistance (last resistance before new All Time Highs)
And while this resistance could force ETH into a retest of the triangle…
A successful retest would likely result in a break past red pic.twitter.com/bLoHXbIrHl
— Rekt Capital (@rektcapital) April 1, 2021
Another well-known pseudonymous trader, Rookie was optimistic of Ethereum’s technical market structure. Rookie is eager to see Ethereum outperform Bitcoin from April onwards to June, especially when one looks at the momentum it has gained on the ETH/BTC pair.
Since early March the pair has been stagnating, even after Bitcoin saw a strong upward trend that got it to almost $60,000. Now, since March 9, the ETH/BTC pair is seen bursting forth, which is building up its technical momentum as it inches close to $2,000. Rookie is expecting ETH to outperform BTC in this second quarter.
Expecting Ethereum to outperform Bitcoin for all of Q2
— RookieRUNE 🧲 (@RookieXBT) March 31, 2021
Bullish On-chain Data is also Fueling this Momentum
Glassnode, an on-chain analytics provider, presented data that revealed an increase in the number of active Ethereum addresses, they soared to a one-month high of 33,257.
Ethereum’s active addresses. Source: Glassnode
This increase in the number of active addresses is at par with the rise of the ETH price, which shows that user activity on the Ethereum blockchain is on an upward trend. It is good to note that in most blockchain protocols, if an underlying toke’s price is complemented by a rise in user activity, then this is a promising trend because the core of the blockchain is its value transfer network.
Image courtesy of pixabay