The price of Ethereum’s Ether (ETH) token has been experiencing some fluctuations against Bitcoin (BTC) in April 2023. While making a series of lower highs, the ETH/BTC pair was down about 5.5% from its local high of 0.0709 BTC six days ago. Interestingly, this underperformance by Ethereum was counter to institutional flows for the past week. Ethereum funds attracted $17 million to their coffers in the week ending April 21 versus Bitcoin’s $53.1 million outflow, according to CoinShares’ latest report.
For now, ETH holds above its 50-day exponential moving average (50-day EMA) near 0.0672 BTC. But if the March 2023 fractal is any indication, Ethereum’s price could drop sharply below the support wave. The ETH/BTC pair saw a pullback trend in March after testing the 200-day EMA, breaking below its 50-day EMA in the process. If the fractal plays out similarly in April, the downside target is 0.0627 BTC by the month’s end, about 7% lower than the current levels, and a level that served as major support in March and April. This target also coincides with Ether’s long-term ascending trendline support, the “buy zone” in the chart.
It’s worth noting that the lower price for Ether doesn’t necessarily spell doom for the cryptocurrency. Ethereum has been making progress on several fronts, and investors remain confident in the long-term potential of the blockchain. For example, Ethereum’s Shapella upgrade has been successful, leading to increasing confidence amongst investors. James Butterfill, head of research at CoinShares, notes that the recent inflows of Ethereum funds were solely from Europe.
Despite the current fluctuations, the long-term outlook for Ethereum remains bright. The cryptocurrency has been gaining traction among investors and developers as the go-to blockchain for decentralized applications (dApps). This has been helped by the development of infrastructure such as the EVM (Ethereum Virtual Machine) which powers smart contracts, decentralized finance (DeFi) applications, and non-fungible tokens (NFTs).
Moreover, Ethereum’s current price is still up about 15% versus Bitcoin since the Shapella upgrade, indicating that Ethereum may have some potential price gains ahead. This is supported by Markets Pro, which has predicted a potential 379% gain in one day for Ethereum.
In conclusion, while the current price of Ethereum’s Ether token has retreated from its recovery trend versus Bitcoin, the long-term outlook for the cryptocurrency remains positive. Despite the recent fluctuations, institutional investors continue to show confidence in Ethereum, while developers and investors alike recognize its potential as the leading blockchain for dApps, DeFi, and NFTs. With continued development and infrastructure improvements, Ethereum has the potential to become a major player in the cryptocurrency market in the years ahead.