Ethereum is historically highly correlated to Bitcoin. While it created much-needed validation and stability with the support of the No.1 cryptocurrency, it also means that Ethereum is fundamentally identified as a cheaper alternative to Bitcoin. This is no longer the case, as between January 21st and February 2nd, the correlation dropped by 108%. Ethereum’s price rose from $1200 to around $1600 as Bitcoin price dropped.
Another significant event happened between April 20 and May 15, where Ethereum’s price rallied by 60%. Right now the Ethereum Bitcoin correlation is seeing another drop, which might be the indication of another big price rally waiting to happen.
Ethereum 2.0, which promises the transition to PoS, painted a bright picture of 99% energy consumption reduction and a more sustainable cryptocurrency model. As Bitcoin is under attack for having the same energy consumption as the entire nation of Egypt, this transition might set Ethereum on a promising path moving forward.
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