Ether (ETH) price is seeing greenish in its Bitcoin (BTC) pair on April 21, reaching the highest levels since early on Feb. Given the technical breakout of ETH/BTC, traders are start to look a strong rally in the foreseeable future.

During the offset two weeks of April, ETH was outperformed past Binance Money (BNB), the native token of Binance Smart Chain.

The high transaction fees on Ethereum coupled with the high user activeness on Binance Smart Chain led BNB to proceeds momentum confronting Ether.

However, in the past few days, ETH toll has started to rally against both Bitcoin and BNB, the first and third largest cryptocurrencies in the global market, respectively.

Why is ETH rallying against Bitcoin?

In the past 24 hours, led by Ether, the altcoin market gained confronting Bitcoin, causing the Bitcoin Dominance Index to fall to l.7% on CoinMarketCap, the lowest level since summer 2018.

ETH/BTC iv-hour cost chart (Binance). Source: TradingView.com

One chief reason why the altcoin market place is rallying is because altcoins generally saw sharper drops than BTC post-obit the Coinbase listing.

Hence, when Bitcoin began to consolidate and stabilize, altcoins started to encounter a relief rally, led by Ethereum and BNB'southward momentum.

After the futures market place recovered, following over $10 billion worth of liquidations on a unmarried day, the appetite for risk-on assets within crypto also likely rose.

This collection the need for Ethereum, BNB, Dogecoin (DOGE), and many other cryptocurrencies with relatively high volume and valuation.

In the most term, traders say that the breakout of the ETH/BTC pair could lead to a broader parabolic rally, particularly for altcoins.

A pseudonymous trader known as "Crypto Capo" expressed optimism towards ETH's breakout against BTC. He said:

"$ETH/BTC is going to redefine the concept of parabolic."

Similarly, a cryptocurrency derivatives trader NekoZ said that ETH is showing stiff momentum, which would probable spill over to altcoins.

The trader noted:

"Love the reaction we are having so far. Should behave nicely into the calendar week and build momentum effectually alts."

Another respected cryptocurrency derivatives trader known equally "Bluntz" said that ETH/BTC looks "insane" after a massive capitulation result.

A capitulation upshot refers to a scenario when an asset's price bottoms out later on a sharp drop.

Bluntz emphasized that ETH is demonstrating a double bottom nautical chart, which in technical analysis oftentimes points toward a short-term trend reversal.

He wrote:

"ETH double bottom on 4h, and ETH/BTC looks absolutely insane once again. Wow that was the greatest capitulation event I tin can remember for a long time. Fifty-fifty i capitulated most of my lev trades."

On-chain data is also bullish

According to the data from CryptoQuant, the amount of ETH beingness staked in the Ethereum 2.0 deposit contract is rising.

Total value staked in eth2. Source: CryptoQuant

This decreases the circulating supply of ETH on exchanges, which should put upwards pressure on the price of ETH.

The increase in fees, which is verifiable through on-chain information, also indicates that action continues to rise on Ethereum despite the already high fees.

Aftab Hossain, an Ethereum and investor, said:

"Ethereum / DeFi has focused heavily on infrastructure, which BSC was able to copy and centralize to arrive faster with an incentive to focus on integrated UX i remember cheaper L2 tx'south will enable for greater scaling and will allow for disquisitional smart contract wallet innovation."

Binance Smart Chain and other layer ones accept been performing strongly against Ethereum, simply the release of Eth2 and layer two solutions could make Ethereum more than compelling for casual users in the months to come up.