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The price of Ether (ETH) broke for the first time in 23 days in its Bitcoin (BTC) pair. This follows a high-profile announcement by Visa to use USDC, a stable coin based on the Ethereum blockchain.
Although ETH / BTC experienced a strong technical breakout, the uptrend was fueled by firm fundamental catalysts, supporting ETH’s near-term bullish case.
Traders believe Ethereum will outperform Bitcoin in April
According to the pseudonymous trader known as “Rekt Capital,” Ethereum had been on the verge of breaking out of its triangular market structure several times since January 2021.
However, every time it tried to get out of it, ETH saw a pretty big rejection from the resistance zone.
For the first time in nearly a month, ETH is starting to rise above its resistance level at the top of the triangle, marking its third breakout attempt in three months. The merchant said:
“Got out of his triangle. But he rallied directly to the red resistance (last resistance before new all-time highs) and while that resistance might force ETH to re-test the triangle … A successful retest would likely result in an overshoot. Red. “
Rookie, another well-known pseudonym trader, also said that the technical structure of the Ethereum market appeared optimistic.
The trader explained that he expects Ethereum to outperform Bitcoin from April to June, considering that he has started to see momentum on the ETH / BTC pair.
The ETH / BTC pair has stagnated continuously since early March, even when Bitcoin has seen a strong uptrend to around $ 60,000.
Now, the ETH / BTC pair has erupted for the first time since March 9, fueling its technical momentum as it heads towards $ 2,000. Beginner Noted:
“Ethereum is expected to outperform Bitcoin for all of Q2.”
On-chain data is also bullish
Meanwhile, data from Glassnode shows the number of active Ethereum addresses topped a one-month high at 33,257.
The growing number of active addresses indicates that user activity on the Ethereum blockchain is increasing along with the price.
For any blockchain protocol, the rally in the price of its underlying token complemented by increased user activity is an optimistic trend because a blockchain at its core is a value transfer network.
On top of that, the total value stuck in DeFi loans on Ethereum has been steadily increasing since 2020. An Ethereum alias investor and researcher known as DCinvestor said:
“Believe it or not, it was a common refrain a few years ago when DAI was launched, people didn’t get it, and they avoided secured loans, but the numbers don’t lie now, that becomes the foundation for an efficient new hyper-capital world being built on #Ethereum via #DeFi. “
As long as user activity on the Ethereum blockchain continues to increase alongside important DeFi-related measures on Ethereum, the price of ETH would likely reflect the growing demand for its blockchain network.
Since the main demand for ETH is for DeFi as a means to pay for “gas” or transaction fees, the popularity of DeFi would catalyze the value of Ethereum.
EIP1559 is not included in the price
– ΞDavidHoffman.eth (Trustless State) March 29, 2021
Commentators also say that the EIP1559 proposal, which is expected to go live in July, is not factored into the price of Ether, which would reshuffle Ethereum’s fee market structure and indirectly drive the ETH to become scarce.
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