Ethereum investors are excited; the price of Ether (ETH) set a new all-time high on April 21 and is on its way up again after a correction. This gives traders hope that we now see the start of a new rally for Ether. They are bullish on Ether’s breakout against Bitcoin and believe that Ether will rise proportionately more than Bitcoin in the near future.
In the past week, Ether has thus risen against Bitcoin and BNB, the largest and third largest cryptocurrencies, respectively.
The Bitcoin price hit a preliminary low last night of $ 47,000 a month – its lowest level on March 26.
Some analysts point out that a stabilization of the Bitcoin exchange rate could mean new gains for the altcoin market with Ether taking the lead.
A further consolidation and stabilization of the Bitcoin price gives altcoins a much-needed rebound.
One of the explanations for the rise of the entire crypto market and the large inflow of new money into the market is the inflation of the US dollar. It is a fact that the value of the dollar has fallen over the last decade in terms of purchasing power. Thus, it costs 18% more in USD to buy something here in 2021 than it did in 2011.
In addition to rising inflation, analysts point to the scarcity factor (the limited amount of BTC) as a major driver for the crypto market.
The price of Bitcoin has fallen over the past week, but broke back over $ 50,000 during the night, which triggered an even bigger increase for Ether, which in turn trades over $ 2400. sells Bitcoins for Ether, further driving up the price of Ether.