The charts of the two coins are remarkably similar. After reaching this height, ETH also declined as BTC, but was stopped by its own strong support level at $ 640. Meanwhile, resistance at $ 660 prevents it from going further up, and so ETH got it its own belt, with upper and lower bumps that hold it.
Obviously, ETH has shown an extreme correlation with BTC, but the correlation is not all that the coin has gone for. Ethereum has recently finished Phase 0 of its Ethereum 2.0 launch, and Phase 1 had officially begun on December 1st.
The upgrade of the coin will be a long one, and it will take some time to fully move to a new, safer and more scalable version. However, Ethereum has finally embarked on a long-awaited journey, which has renewed the confidence of many investors 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 flagship platform for developing the DeFi project.
What will happen with BTC and ETH next?
With this week being a huge success for Bitcoin and Ethereum, many are now waiting to see how it all plays out.
Most people are bullish on Bitcoin, as they expect the price of the coin to skyrocket to even greater heights. After all, historical data suggests that BTC usually swells quite a few months after going through one of its suspensions.
There are those who disagree with this, pointing out that the two are disconnected, and that Bitcoin is moving in circles, with the fact that growth comes after halving is just a coincidence.
Others expect the coin to experience a major correction, which could pull it down to some lower levels, possibly cutting its price in half. While this may be a possibility, the demand for the coin is at an all-time high, as is the price of BTC, as the new bull run awaited since 2018 is finally starting.
As for Ethereum, the coin is still tied to Bitcoin itself, and is unlikely to disconnect from it anytime soon. For now, most would be happy to see ETH reach even half of its ATH.
But, there is no doubt that ETH has a lot of potential, and will likely start attracting even more traders as it moves towards Ethereum 2.0.
Konstantin Anissimov, Executive Director of CEX.IO