Ethereum's price went up by 4.25% today, hitting around $3200 on April 21. This increase reflects the overall upward movement in the cryptocurrency market, which grew by 3.5% in total value during the same time. Let's delve into the main factors behind Ethereum's strong performance today compared to the wider crypto market.

Why Ethereum Is Rising:

Today, Ethereum's rise against the US dollar is mostly because more money is coming in from the Bitcoin market. The ETH/BTC ratio went up by about 2.5% in the last 24 hours, reaching 0.048 Bitcoin on April 21. As a result, Ethereum's Dominance Index (ETH.D), which measures Ethereum's market strength against other cryptocurrencies, grew by over 1% in the same period.

These gains are part of a recovery happening alongside Bitcoin's fourth halving event on April 19. Since this event, the ETH/BTC ratio and ETH Dominance (ETH.D) have increased by around 3% and 0.75%, respectively. Historically, after every Bitcoin halving event, more money has flowed from the Bitcoin market to Ethereum. For example, after the second halving event in July 2016, the ETH/BTC ratio went up by 64%. Similarly, after the third halving event in May 2020, this ratio nearly doubled.

This trend shows that when a halving event happens with Bitcoin, investors often either sell their Bitcoin or reduce their demand for it since they expect the price to go up, and this expected increase is already factored into the market. So, money from Bitcoin moves to other parts of the crypto market, benefiting alternative cryptocurrencies like Ethereum.

Key Data Points for Ethereum:

Before Ethereum's recent gains, there was a period where the wealthiest investors, known as whales, were accumulating Ethereum. According to the blockchain data analysis platform Glassnode, the amount of Ethereum held by addresses owning between 1,000 and 10,000 Ethereum went up in the last two weeks.

Similarly, the amount of Ethereum held by institutions with balances of 10,000 to 100,000 Ethereum also increased recently, showing that whales are getting back into the Ethereum market. Interestingly, this pattern of accumulation often comes before significant price increases, as seen with Ethereum today.

In conclusion, Ethereum's price surge today is driven by increased investment from the Bitcoin market and a resurgence of interest from wealthy investors. This aligns with historical patterns observed after Bitcoin halving events, indicating a shift in investor focus towards alternative cryptocurrencies like Ethereum.