Bitcoin’s price is falling, but can the upcoming halving and the stubborn growth trend of Ethereum prevent this?
Ethereum is bitcoin’s hope
Ethereum (ETH) has seen increased activity recently and its price has increased by 115% since 13 March, this may be due to the upcoming premiere of Ethereum 2.0 about which we wrote in an article of 20 April (Will Ethereum 2.0 revolutionize the crypto market?). These factors may have a positive impact on Bitcoin (BTC) value.
Differences and similarities
Bitcoin value (BTC) is characterized by a bearish structure that has much lower ups and much more serious downs. Ethereum (ETH), on the other hand, has many higher-ups and less serious falls.
6-month Ethereum chart (ETH/USD). Source: TradingView
Altcoin, who is leading the way, has high peaks because the daily candle has closed significantly higher than in early February. Investors in cryptocurrency believe that Ether upward trend can support the entire crypto market and prevent another dip in Bitcoin. At the same time as Ethereum was going up, Bitcoin’s price increased steadily by 4% in 24 hours, despite the fact that BTC is reaching lower highs than ETH. According to analysts, crypto:
“Ether has a positive effect on Bitcoin’s short-term prices.”
A 6-month Bitcoin chart (BTC/USD). Source: TradingView
Great hopes for Ethereum
According to a crypto merchant known on twitter as Chase NL, Ether’s strong rush can prevent Bitcoin from falling sharply. He noticed on one of his tweets, the possibility of one of two scenarios. ETH will go so far up that BTC will go back to its prime or Bitcoin’s inability to grow and thus drop ETH.
Crucial moment here for $BTC and $ETH.— Chase_NL (@Chase_NL) April 22, 2020
Can ETH rally hard enough to bring BTC back above the yearly open? Or will BTC's sluggishness and inability to close above the yearly open bring ETH back downwards?
This will set my "bias" for the coming days/week most likely.
We will soon find out whether investors waiting for Ethereum 2.0 prevent Bitcoin from falling in the short term. However, traders warn that another dip in price and correction of Bitcoin may come anyway.