Ethereum: $2100 sinks as altcoin surpasses yet another all-time high

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Though Ethereum’s market action was mostly sideways beginning in the second week of March 2021, the month’s final days saw a resurgence of bullish momentum. This resulted in a nearly 40% increase over the last two weeks, allowing the world’s largest altcoin to break the prized $2,100-price mark and set yet another all-time record.

Since the beginning of Bitcoin’s bull run in late 2020, positive enthusiasm for the currency has been building. Since then, ETH has broken through some primary resistance thresholds on the charts. Prior to its present ATH, Ethereum surpassed the $20,000 mark in February before experiencing a price reversal.

Since then, ETH has been in a turnaround mode, with the alt recovering by 100 percent on April 2nd to hit a high of $2,146 a short time ago. The above rise accompanied a 7 percent spike in 12 hours. However, at the time of publication, the industry was undergoing some corrections.

Source: CoinMetrics

However, examining the coin’s dynamics sheds light on why this market increase was anticipated to some extent. What has historically been known as ETH’s crutch has served in its favour this time around.

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The altcoin market is inextricably linked to Bitcoin’s price movement, and the tale is no different for the altcoin king, ETH. According to CoinMetrics data, the BTC-ETH correlation has been increasing over the last month. This had risen to 0.752 at the time of publication.

Bitcoin traded northbound on the charts in the last few days of March, and this was still the case at the start of April. This bullish sentiment carried over into the Ethereum market, allowing the price to pass the $2k mark right at the start of the month.

Source: Glassnode

Surprisingly, the price increase at the beginning of April has also resulted in a new all-time record in terms of the number of ETH addresses that are reportedly profitable. According to Glassnode info, over 54 million addresses were profitable on April 2nd. This is a good indication for the coin because the market is confident in ETH’s long-term future and expects the price to rise further.

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If a local top has been broken, traders are likely to hodl and try to hold the market away from price corrections.

Source: Glassnode

Furthermore, the overall valuation of the ETH 2.0 Deposit Contract reached a new peak of $7,199,968,879.64, indicating that there is a lot of confidence in ETH 2.0’s staking network.

Although market dynamics sustain the overall bullish mood for ETH, according to data given by Santiment, there has been an uptick in crowd scepticism. While this may seem to be inconsistent, historical precedents show that this has traditionally been bullish for altcoins such as ETH.

However, given the solid business conditions for ETH and the fact that it has broken through $2,100, further exploration above the stage is still possible as 2021 progresses.

 

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