The Ethereum price saw : a significant increase today for several key reasons:

 

The Ethereum price saw :

a significant :

increase today for several key reasons:

Capital Flow from Bitcoin to Ethereum:

One of the primary drivers behind Ethereum's outperformance today is the

movement of capital from the Bitcoin market into Ethereum.

Bitcoin's price is currently at $64,519

and there's been a notable increase in the Ether/Bitcoin pair

which rose approximately 2.5% over the last 24 hours to reach 0.048

Bitcoin on April 21. This shift is reflected in the Ether Dominance Index (ETH.D)

which tracks Ethereum's strength against the broader cryptocurrency market

increasing by over 1% in the same period.

Historical Pattern of Post-Bitcoin Split Capital Flows:

Historically

Ethereum has experienced increased capital inflows from Bitcoin after each

Bitcoin split event. For instance, following the second Bitcoin split in July 2016

the Ether/Bitcoin pair rose by up to 64%. Similarly

after the third split in May 2020, this pair saw an increase of around 100%.

Investors tend to either sell off their Bitcoin holdings or reduce their demand

for it post-split :

with anticipated price hikes usually factored into the market before the event.

As a result, alternative cryptocurrencies like Ethereum benefit from this shift in

investor attention, as capital moving away from Bitcoin seeks new growth

opportunities elsewhere in the cryptocurrency market.

Return of Whales in the Ethereum World:

• Another contributing factor to Ethereum's recent gains is the accumulation

• by wealthy investors, known as "whales." According to data from Glassnode

• holdings of Ether in addresses holding between 1000

• and 10,000 Ether have increased

over the past two weeks. Similarly, Ether supplies held by entities owning

balances ranging from 10,000 to 100,000 Ether have also seen recent increases

indicating the return of whales to the Ethereum market.

This accumulation pattern often serves as an indicator of significant

price increases, similar to what Ethereum is experiencing today.

Technical Rebound of Ethereum Price:

Today's surge in Ethereum appears to coincide with a bounce off the lower

trendline of the current descending channel pattern as support.

Notably

• this supportive level is also close to the Fibonacci retracement level of 0.5

• for Ethereum around $2820 and the 200-day Exponential Moving Average

• (200-day EMA) at approximately $2725.

Traders are interpreting this support area as a favorable zone to buy Ethereum.

• These intersecting indicators suggest that traders view this supportive zone

• as an attractive entry point for buying Ethereum, contributing to

• the price increase observed today.