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ETH stagnates behind Bitcoin as well as the US dollar which came as the dominant cryptocurrency hit a new all-time high in the past few hours so let’s check up on the Ethereum price analysis in our crypto news.
Right when BTC started climbing to $49,900, the price of ETH dropped at the same time and ETH stagnates behind Bitcoin but it was still rare to see the coin drop so sharply when the benchmark crypto was soaring. Traders say that this was a severe case of the ETH/BTC pair breaking down with the price of BTC rallying. Over the past week, the ETH/BTC pair saw both of them performing well with the first outperforming BTC and BTC regaining momentum shortly after.
As BTC reached a new all-time high and took most of the momentum in the crypto market, the larger cap altcoins like ETH dropped. Crypto trader Feras Y said:
“Since #Bitcoin is taking the lead now, $ETHBTC is normally pulling back Currently testing the neckline for the proposed iH&S (following since months, refer to thread) I want 2 c the neckline holding for potential 50-100% Move up as explained.”
In the near-term, ETH could do well against BTC given that the latter breaks out of the $50K range and consolidates shortly after. Traders remain uncertain where BTC is headed in the near-term because of the $50K resistance level acting as a strong sell wall. The clean break past this level could lead ETH to break out of the current price range. Analysts at Santiment found that the number of ETH whales dropped in the past month as the price of ETH reached a new ATH.
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The metric can be interpreted in a few ways as some could argue that since the whales started selling, it shows a bearish trend for the coin in the near future. Considering that ETH is going to hit new highs, the analyst said:
“#Ethereum’s top 100 whale exchange addresses are holding the lowest balance of $ETH tokens (~11.4M) in 27 months. This number has dropped along the way to $ETH’s new #AllTimeHigh. Watch this inverse correlation between price & exchange whales closely!”
With the exchange reserves dropping and the stablecoin inflows rising, ETH is in a strong position to see a rally continuation.
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