The price of Ethereum's native cryptocurrency, Ether (ETH), has experienced a notable surge today, climbing by 3.5% to surpass the $3,630 mark as of March 31. This uptick in ETH price marks an increase of approximately 18.75% from its recent local low of around $3,050, which was established just over a week ago.

Let's delve deeper into the various factors that have contributed to the recent gains in Ether's price.

One significant factor contributing to Ether's price appreciation is a noticeable rotation of capital within the cryptocurrency market. Notably, Ether has exhibited strong gains against Bitcoin, with the ETH/BTC pair rising by approximately 2.5% on March 31 to reach 0.051 BTC. This suggests a potential shift in capital allocation in the short term, with investors showing increased interest in Ether relative to Bitcoin. Moreover, Ether's performance against other altcoins has also improved significantly, as evidenced by a 2.16% increase in the Ethereum Dominance Index (ETH.D) from its recent low on March 29. This uptrend underscores a growing influx of capital into the Ether market, which has bolstered ETH's value against the US dollar.

Furthermore, the recent uptick in Ether's price comes amid a period of accumulation among large investors, commonly referred to as whales. Data from Glassnode indicates that entities holding between 1,000 and 10,000 ETH have increased their Ether holdings by approximately 1.15% in March. Historically, such accumulation patterns among whales have often preceded significant price rallies, mirroring the current upward trajectory observed in the ETH/USD pair.

Additionally, Ether's price gains today coincide with a notable rise in its funding rates in the perpetual contracts market. As of March 31, the funding rate for Ether perpetual futures contracts has reached a three-week high, indicating an increased cost associated with holding long positions. This suggests growing optimism among traders, who are borrowing more to finance their long positions in anticipation of further price appreciation in Ether.

From a technical standpoint, Ether's price rebounded after testing the lower trendline of what appears to be a rising wedge pattern. The cryptocurrency also found support near the 0.236 Fibonacci retracement level, which is around $3,485. A rising wedge pattern typically signals a bearish reversal, with the price expected to decline after breaking below the lower trendline. However, if Ether manages to break above the upper trendline of the wedge, its price could surge to over $4,000 by the end of April, targeting the 0.0 Fibonacci retracement level.