The price of Ether (ETH), Ethereum’s original cryptocurrency, has slumped against Bitcoin in recent days after several weeks hard against BTC.
In recent weeks, ETH and BTC have shown some reverse correlation as ETH rose sharply after the consolidation of BTC, and vice versa.
So why is ETH struggling now?
Bitcoin saw good gains in recent hours after BNY Mellon said it would start offering Bitcoin services later this year.
Roman Rigelman, CEO of BNY Mellon, Asset & Digital Services, said:
BNY Mellon is proud to be the first global bank to announce plans to offer integrated services for digital assets. Increasing customer needs for digital assets, maturity for advanced solutions and improved organizational clarity gives us a tremendous opportunity to expand our current service offerings in this evolving area. ”
The announcement boosted Bitcoin’s momentum almost immediately, increasing from $ 45,500 to $ 47,400. Finally, after a few hours, the price reached an all-time high of over $ 48,500.
During the same period, the ETH / BTC pair pulled out despite the fact that their respective dollars were left in relative lockdown. But in recent weeks, ETH has generally grown stronger than Bitcoin during the uptrends, along with the major altcoins and DeFi tokens.
But over the past 24 hours, as Bitcoin gained massive short-term momentum, ETH lagged behind BTC.
Well-known network analyst Willie Wu said Bitcoin is historically the best “multi-cycle HODL” while ETH is the “best average macro” for swing trade.
This trend is also seen during short-term cycles, as Bitcoin tends to rally steadily most of the time, while ETH accelerates against BTC or recession. He said:
“Risk-adjusted return over a 4-year retention period. -> Winner: Draw. See how short the ETH tracks are? This demonstrates how new and untested they are, with only one macro data cycle so far. Gold (6000 years of tracking) also appears. , Supply inflated 100% over 40 years, not digital). Personal opinion based on this data: – BTC is the best multi-cycle HODL. “ETH is the best mid-tier swing trade.”
What’s next for Ethereum?
In the short term, traders and analysts remain generally optimistic about the short-term ETH cycle.
For example, the CME ETH futures listing had no reaction to the news sales, a positive factor that may increase the chances of the rally in ETH continuing.
Additionally, the first trading day in the CME ETH futures market was over $ 30 million, a relatively high number on the first trading day. So if institutional demand for ETH rises in the same way it did for Bitcoin at the end of 2020, then ETH could see further growth in the coming weeks.
Trader known as Pentos said altcoins and ETH should have much stronger momentum, indicating their current stagnation. He said:
“The alternative market makes me feel a little insecure. $ ETH and $ LINK should have a lot more velocity, DeFi criminals are showing hesitation. Total can find some resistance here at 500B. Something to look for and trust. Not good. Any solution is a possibility.” We look at it this way.
At the moment, $ 1,800 remains the key level to break in order for ETH to gain momentum against Bitcoin and the US dollar for the foreseeable future.