Can Ethereum [ETH] follow Bitcoin [BTC] Bull run?

Over the past few weeks, Bitcoin BTC has stepped on the bull run. This is said due to a consistent surge in Bitcoin prices. Ethereum ETH is the second largest cryptocurrency by market cap after Bitcoin BTC. It is expected to follow and experience the same rally as Bitcoin in terms of price.

KEY TAKEAWAYS

• Bitcoin price surge may spill the rally to other cryptocurrencies
• Ethereum with many positive indicators might follow the surge of Bitcoin

Can Ethereum really Follow Bitcoin?

Bitcoin and Ethereum witnessed a sudden but swift decrease in their exchange reserves from 9 to 13 March. Some investors may have deposited more Bitcoin in the exchange than they purchased. This might have led to a decrease in energy reserves.

Unlike Bitcoin, Ethereum did not see a substantial surge in its market value. However according to the analyst of CryptoQuant, once the value of Bitcoin is fully clear, then Ethereum may experience a significant increase in its value. This assumption is based on the overall positive sentiment toward Bitcoin will spill over to other cryptocurrencies.

Other than that, an interesting indicator that pulls positive sentiment for Ethereum is the number of active addresses. Which have been increasing for some time now. Glassnode’s data indicates that the number of addresses holding more than 0.01 ETH has now reached its highest level in eight months.

While on the other hand, there are signs that the overall activity of active addresses on Ethereum might decrease soon. This could be a result of the decline in NFT trades on the network which may be implying that the user is becoming less interested in Ethereum-based NFTs. Another sign of this down-trend is the decrease in gas usage. Ultimately, suggesting that the activity on the network has fallen. But despite a decline in NFTs, there is a surge in OpenSea.

With the new Shanghai Upgrade on its way, Ethereum there may be a growing interest among traders to make assumptions about the network’s future. Nevertheless, it is a must to keep in mind that high Open Interest can result in an increase in volatility in the coming days. Currently, as per the Coinglass’ data, the trader sentiment appears to be largely bearish, as short positions against Ethereum have recently increased.