Why Ethereum Is Climbing Higher Against Bitcoin
Ki-Young Ju, CEO of CryptoQuant, noted that Ethereum has been seeing massive exchange outflows in the last couple of days. Earlier this week, Ki noted that 400,000 ETH left Coinbase, which may suggest a surge in institutional interest in ETH. Ethereum options market also depicts a positive outlook. Recently, Glassnode indicated that the total value in the ETH 2.0 deposit contract went above the $7 billion marks.
Traders and analysts believe Ethereum will continue to outperform Bitcoin in April. A pseudonymous trader, Rookie commented on the positive technical market structure of Ethereum while stating that he expects Ethereum to outperform Bitcoin throughout April to June, given the breakout on the ETH/BTC pair.
The view is generally optimistic for Ethereum over the next few months due to EIP-1559 scheduled earlier for July. Cantering Clark, a cryptocurrency trader, and an analyst noted that the Ethereum options market shows big bets heading into June.
Asides from this, the number of active addresses is on the rise with exchange reserves steadily reducing, suggesting increased user activity and demand for ETH. As long as the user activity on the Ethereum blockchain continues to increase alongside important metrics about DeFi on Ethereum, the price of ETH would likely reflect the rising demand for its blockchain network.
Conversely, a correction may be on the cards in the near term if Bitcoin strengthens against Ethereum. In case of possible declines, Ethereum has a strong support level located just above $1,500.