Ether outperformed the market after increasing 5% over the last day compared to the 2% rise in BTC as we can see more in today’s latest altcoin news.
Most cryptocurrencies traded higher after a volatile week and Ether outperformed the market, climbing by 5% in the past 24 hours, shy of $3000 for the first time in two weeks. In the meantime, BTC increased above $42,000 and was up by 3% over the same timeframe. The Equities were also higher while gold and traditional safe-haven assets traded lower. The rebound in stocks and the outperformance of the alternative coins suggested an even bigger appetite for risk among investors.
There’s also the potential for greater price swings in the near term. The vice president of digital asset strategy Sean Farrell noted:
“Despite the risk-on week for crypto assets, we will likely encounter additional volatility in the near term. We remain optimistic that any dips for ETH and BTC are buying opportunities.”
Bitcoin’s trading volume on exchanges continued to drop after the spike on Wednesday and the volume of buy orders against sell orders in the futures market was balanced before the weekend which could mean the current upswing in the price lacks conviction. The average funding rate or the cost of holding long BTC positions in the perpetual futures listed on exchanges and the swap market reflected the bullish sentiment.
Ether’s rise is due to the progress on the merge of the ETH blockchain mainnet with the Beacon chain. Ethereum merged on the Klin testnet before the Blockchain’s eventual move to a PoS network with some other network validators producing post-merge blocks that contain transactions. Looking at the technical perspective, the rise in ETH outpaced Bitcoin which could even see another upside over the short-term. The ETH/BTC price ratio held support at 0.064 and now faces resistance at 0.073 which is about 4% away. On the flip side, analysts noticed a slowing activity on the ETH network.
One reason for the slowdown could be a reduction in demand for the expensive NFTS which are minted and traded on the ETH network.