Ether price has rallied 114% since March 13 and the altcoin could be on the verge of rallying college.  Increased action on the Ethereum blockchain and the approaching ETH 2.0 launch announced to be bolstering Ether price and these factors could also benefit Bitcoin'due south price action.

Unlike Ether (ETH), the Bitcoin (BTC) price is seeing a technically bearish structure in the form of a lower high. This means the BTC daily candle closed at a lower betoken from where it was earlier this month. Typically, lower highs at a high time frame like the daily nautical chart tin leave an asset vulnerable to a correction.

Ether notches college highs

Ether is currently showing price action that differs from Bitcoin. The tiptop altcoin has seen a higher high, equally the most recent daily candle closed significantly college than in early Feb.

ETH USD daily chart. Source: Tradingview

Cryptocurrency traders have said that the strength displayed by Ether's price activity could support the momentum of the entire market and prevent Bitcoin from seeing another downtrend.

Traders say Ether is pulling Bitcoin up this fourth dimension

The Bitcoin price increased by around four pct in the final 24 hours, despite the lower loftier design failing to alleviate selling pressure level on the dominant cryptocurrency.

Co-ordinate to cryptocurrency trader Chase NL, the general sentiment around the marketplace is that Ether is positively affecting the near-term cost move of Bitcoin.

In the curt-term, two scenarios could play out every bit a result of the contrasting price trend of Ether and Bitcoin. Chase NL said that Bitcoin's languor could bring Ether downward to exam lower supports or the strong momentum of Ether could foreclose BTC from seeing a sharp pullback.

The trader noted:

"Can ETH rally hard plenty to bring BTC back above the yearly open? Or will BTC's languor and inability to close above the yearly open bring ETH back downwards? This will gear up my 'bias' for the coming days/week about likely."

Cryptocurrency analyst Scott Melker similarly stated that he remains "more than bullish on Ethereum than Bitcoin," acknowledging the optimistic cost structure of Ether.

ETH 2.0 hype and rising network usage support Ether'south accelerate

Ether's strong positioning could possibly be due to the strong extended rally from early February but when the crypto marketplace crashed on March 12, Ether dropped harder than about assets. While BTC saw a l pct turn down, Ether plunged by nearly 70 percent to $ninety.

Ether and BTC performance from record highs. Source: athcoinindex

From it's record highs, Ether is down by effectually 87 pct and BTC has dropped past 63 percentage in the same time menses.

Ether'south oversold setup and the imminence of ETH 2.0 are the two cardinal factors supporting the contempo upside motility of the altcoin.

The surging demand for stablecoins, many of which are based on top of Ethereum smart contracts, also led to the total amount of value transferred on the network to attain parity with Bitcoin, improving a key cardinal metric of Ethereum.

Cryptocurrency researcher Ryan Watkins said:

"Stablecoins now account for lxxx% of daily transfer value on Ethereum, and they're used for significantly larger transfers on average than Bitcoin. Stablecoins merely take better product marketplace fit for transferring value between exchanges, i of today's ascendant utilise cases."

Whether the noticeable improvement in the network action of Ethereum and the apprehension for ETH 2.0 are enough to prevent a market-broad correction in the short-term remains to be seen, as some traders warn that the pause of a major trendline of BTC is likely to result in a correction.