The two coins’ charts are extremely similar. After reaching this height, ETH also dropped like BTC, but it was stopped by its own strong support level at $640. Meanwhile, a resistance at $660 is stopping it from going further up, and so ETH got its own belt, with upper and lower barriers that are keeping it contained.
Obviously, ETH has shown an extreme correlation with BTC, but the correlation is not all that the coin has going for it. Ethereum has recently concluded Phase 0 of its Ethereum 2.0 launch, and Phase 1 had officially started on December 1st.
The coin’s upgrade will be a lengthy one, and it will take quite some time to fully shift to a new, safer, and more scalable version. However, Ethereum has finally embarked on a long-awaited journey, which has renewed many investors’ faith in the project.
Not to mention that DeFi, which went huge this year, was born on Ethereum, and the second-largest crypto project is still the most dominant platform for DeFi project development.
What will happen with BTC and ETH next?
With this week being a massive success for Bitcoin and Ethereum, many are now waiting to see how will this all play out.
Most people are bullish on Bitcoin, as they expect the coin’s price to skyrocket to even greater heights. After all, historical data suggests that BTC typically surges quite a bit several months after going through one of its halvings.
There are some who disagree with this, noting that the two are unrelated, and that Bitcoin moves in cycles, with the fact that growth comes after halving being only a coincidence.
Others expect the coin to experience a major correction, which may pull it down to some lower levels, potentially even cutting its price in half. While this might be a possibility, the demand for the coin is higher than ever, and so is BTC price, as the new bull run that was awaited since 2018 is finally starting.
As for Ethereum, the coin is still tied to Bitcoin itself, and it is unlikely that it will decouple from it anytime soon. For now, most would be pleased to see ETH reach even half of its ATH.
But, there is no doubt that ETH has a lot of potential, and that it will likely start attracting even more traders as it progresses towards Ethereum 2.0.
Konstantin Anissimov, Executive Director at CEX.IO