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Thursday, February 11, 2021

Ethereum vs Bitcoin: Why Is ETH / BTC Weak ?

 

Ethereum vs Bitcoin: Why Is ETH / BTC Weak
Ethereum stagnates against Bitcoin after BNY Mellon announced its adoption of digital assets.


Stagnating Ethereum

Ethereum (ETH) price had a strong few weeks against BTC. However, it has stagnated against Bitcoin in recent days.

Over the past few weeks, ETH has risen strongly while BTC has consolidated. However, the opposite also happened. Therefore, we sometimes encountered some inverse correlations.


So Why Is ETH Struggling Right Now?

Bitcoin has risen significantly in the past few hours. Because, BNY Mellon announced that it will start offering Bitcoin services later this year.

Roman Regelman, CEO of BNY Mellon, said:

“BNY Mellon is proud to be the first global bank to announce its plans to provide an integrated service for digital assets. There is increasing customer demand for digital assets. Therefore, the current situation is a tremendous opportunity to move our service offerings towards this new area. ”

The announcement almost instantly boosted Bitcoin's momentum. Therefore, the price increased from $ 45,500 to $ 47,400. It eventually hit an all-time high above $ 48,500.

In the same period, the ETH / BTC rate declined despite the relevant news. But in recent weeks, ETH has generally risen higher than Bitcoin during bullish trends, as well as both large volume altcoins and DeFi tokens.


However, in the last 24 hours, Bitcoin has gained significant momentum. Therefore, ETH lags behind BTC.

Willy Woo, a popular in-chain analyst, also made a relevant statement. Woo points out that historically Bitcoin was a better "multi-loop HODL". Therefore, he emphasizes that ETH is a "better mid macro" swing trade.

This trend is also valid in short term cycles. Because while Bitcoin tends to rise steadily most of the time, it is accelerating against ETH or BTC. Or it stagnates.

What's Next for Ethereum?

In the near term, traders and analysts are generally optimistic about the short term cycle of ETH.

For example, there was no selling reaction to the CME ETH futures list. This is a positive factor that can increase the chances of ETH's rally to continue.

On the first day of trading, the CME ETH futures market traded over $ 30 million, a relatively high volume for the first day of trading. Therefore, if institutional demand for ETH increases in a similar way to Bitcoin in late 2020, ETH could see a wider rally in the coming weeks.

What's Next for Ethereum



One trader known as "Pentoshi" said altcoins and ETH should have a much stronger momentum. However, he suggested that they are now stagnant.

“When I look at the altcoin market, the market pushes me into a somewhat uncertain atmosphere. Because in my opinion, ETH and LINK have much more potential. "

For now, the $ 1,800 level is important. Because this level remains the key level that must be broken for ETH to gain momentum against both Bitcoin and the US dollar in the foreseeable future.



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