A fragile Bitcoin since the launch of ETFs – Since the validation and launch of spot Bitcoin ETFs, BTC has fallen 17%. Yesterday, the price fell below $42,000, and this led to liquidations of $200 million. For its part, ETH followed the downward movement, and the price is back at the $2,400 level. Can the second capitalization of cryptocurrencies start to rise again without Bitcoin? Here is the ETH newsletter!
This analysis of the Ethereum price is offered to you in partnership with CryptoTrader and its algorithmic trading solution finally accessible to individuals.
Ethereum price falls 3% in 24 hours
Despite the recent strength that ETH has shownand in particular during the launch of spot Bitcoin ETFs, the price ofETH follows Bitcoin in its fall. In fact, the price of Ethereum fall of 3% in 24 hoursand more than 5% in one week :
In one month, the course maintains a increase of approximately 11%. Faced with BTC, Ethereum remains relatively strong. The ETH/BTC pair climbs1% in 24 hours and more than 5% in one week.
Correlation between Bitcoin and Ethereum falls and recalls 2021 and 2017
For the moment, it is BTC which dictates its law. Indeed, with the exception of a few rare altcoins, low-capitalization assets tend to follow the movements of the king of cryptocurrencies. When ETH manages to break away from BTC, altcoins manage to express themselves (outperform BTC). Since the end of the 2021 bull market, the Bitcoin and Ethereum are highly correlated :
The correlation between the two largest capitalizations of cryptocurrencies seems little by little to attenuate. In fact, she has dropped below 0.7 for the first time since 2021. This is a sign of strength for ETH which recalls 2021 and 2017. If the correlation continues to fall, the prince of cryptocurrencies could outperform BTC. ETH being the leader among altcoins, they could also benefit from this decorrelation.
Ethereum price is back at the support level at $2,400
ETH blocked at the level resistance at $2,700and the sellers managed to bring the price back to the level of support at $2,400. Despite this decline, the price continues to show a dynamic with rising lows and highs :
A bounce could bring the price back to the level of resistance at $2,700. On the other hand, if sellers manage to bring the price down below $2,400a return to $2,300 is possible. A scenario that should be avoided, because the price would return to the range between $2,400 and $2,100. Therefore, the price could drop to $2,100. The RSI evolves under a bearish trendlineit will have to be broken to potentially find some bullish volatility. It will also be necessary tofind bullish momentum on the RSI.
The correlation between Bitcoin and Ethereum is weakening. This could allow the prince of cryptocurrencies to continue its upward momentum. To do this, buyers will need to be able to defend the support level at $2,400. Next, buyers will need to break out of the resistance at $2,700. If ETH continues its momentum, altcoins could benefit.
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