Ether Price: 30% Weekly Gain Driven by Bitcoin Rally

While these developments might not be directly connected to the Ether, investors are aware that the number of Ether locked into DeFi platforms has risen tremendously risen throughout 2019 and the majority of DeFi platform are built on the Ethereum Network.

In a way, DeFi has become somewhat synonymous with Ether and the Ethereum network which could be leading investors to interpret all DeFi news as potentially bullish events for Ether.

This week's 30.29% gain from Ether backs up the claim that the altcoin's price action has been riveting as of late.

The week started with Bitcoin's collapse from $8,050 which rocked Ether and caused its price to drop out of the descending wedge pattern to form a double bottom at $152.95.

Prior to Friday's massive Bitcoin led rally which saw BTC gain 42% and Ether 24.23%, the altcoin traded in a gray area, nudging quietly against the bottom trendline of the descending wedge.

The historic Oct. 25 rally sent Ether price well above the trendlines of the descending wedge to set a near 2-week high at $199.61.ETH USD daily chart.

Currently Ether is situated right at the 50-day moving average after setting a 16-day high at $199.61 which was well above the 100-day moving average.

This move would also align with the steep drop from $204 that took place on Sept.24 and was previously the first sell target for any Ether position opened from $152. The volume profile visible range shows that in the current range from $180 to $206 there is limited overhead selling pressure so in addition to yesterday's 24.23% gain, momentum traders might pull up their stop orders with the anticipation that volume sustaining on Bitcoin and Ethereum, Ether could still have an additional 11% to run.

The weekly time frame shows Ether broke above the descending channel and briefly pierced the 61.8% Fibonacci retracement level, a point which is significant to many traders.

Ether remains below the 200-DMA and Friday's drop also plunged the altcoin below the 50-DMA. Without reading into the situation too deeply, it's possible that as Bitcoin made its stunning upside move, traders shifted into BTC to catch the action.