Is a strong bull rally coming? The price of Ether vs Bitcoin is rising sharply
With technology momentum building, the price of Ether has risen relative to Bitcoin for the first time in nearly a month.
The price of Ether (ETH) rose for the first time in 23 days on its Bitcoin (BTC) peer. Before Visa announced the use of USDC, a stable coin based on the Ethereum blockchain network.
Although the ETH / BTC pair has experienced strong technical gains, strong fundamental catalysts have driven the uptrend, boosting ETH's near-term optimism.
Traders believe Ethereum will outperform Bitcoin in April.
Since January 2021, Ethereum has almost deviated from its triangular market structure several times, but every time it tries to break through Ethereum, it will suffer considerable rejection at the resistance area.
Ethereum broke through its resistance level for the first time in almost a month, marking the third attempt to break through in three months.
Ethereum's technical market structure is bullish. Considering that it has started to see growth in the ETH / BTC pair, Ethereum will outperform Bitcoin between April and June.
Since early March, the ETH / BTC pair has been stagnant, even though Bitcoin recorded a strong uptrend that lifted it to around $60,000.
Now, the Ethereum / BTC pair has soared for the first time since March 9, complementing its technical momentum towards $2,000.
The increase in the number of active addresses indicates that user activity on the Ethereum blockchain network is consistent with the price.
For any blockchain protocol, the increase in the price of its underlying tokens and the increase in user activity is an optimistic trend, because the core of the blockchain network is the value transfer network.
Moreover, since 2020, the total value of DeFi loans locked in Ethereum has steadily increased.
As long as user activity on the Ethereum blockchain network continues to grow along with important DeFi-related indicators on Ethereum, the price of Ethereum may reflect the growth in demand for its blockchain network.
Since the main demand for ETH comes from DeFi as a means to pay for gas or transaction fees, DeFi's popularity will catalyze Ethereum's value.
The proposed EIP1559, which is expected to come online in July, is not included in Ethereum's price, which will change Ethereum's fee market structure and indirectly lead to a shortage of Ethereum.
It is an official altcoin season, so yes, all major alts are supposed to outperform BTC in April-May timeframe. For Ethereum, the rising price is bad symptom. The higher price goes, the less adoption it has. A lot of people have already abandoned Ethereum DeFi sector because of gas fees. The rise of the price with push many more to leave for other chains like BSC. Ethereum team has to fix issues first.
If they haven't realized it sooner or later they will, gas is something that as you rightly say they should correct, although I don't know how that affects the developers who haven't done anything about it by now.