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The price of Ethereum is struggling again against Bitcoin and the US dollar, while BTC is growing with momentum. A similar trend occurred throughout October as BTC rose while ETH remained steady for an extended period.
The most likely reason behind Ethereum’s stagnation amid an ongoing Bitcoin rally is that BTC is sucking volume from the cryptocurrency market.
Among the major exchanges, there is a huge gap between the volume of Bitcoin and other major cryptocurrencies.
This trend could occur due to the lack of resistance between the $ 16k and $ 20k all-time high. As such, there is an influx of traders aggressively betting on BTC reaching $ 20,000.
The 1-hour chart of Bitcoin. Source: BTCUSD on TradingView.com
Bitcoin showing high volatility is causing Ethereum and Altcoin to decline
When Bitcoin goes up, Ethereum and other altcoins don’t go up. But, when BTC falls, altcoins are falling in tandem with BTC.
This cycle has caused alternative cryptocurrencies to underperform versus Bitcoin and the US dollar over the past 24 hours.
A pseudonymous trader known as “Bitcoin Jack” pointed out that BTC is repeatedly seeing a similar cycle. He he wrote:
“When it comes out while the price is fighting a resistance, it gets rejected by it, it revisits it again, it sweeps it, it is rejected again, it sweeps it again, it is rejected again, it sweeps it again and holds, without a convincing sale … Count your blessings it didn’t bomb you up to valhalla “
The lack of certainty in Bitcoin’s direction is driving the momentum of altcoins to decline.
A top lineup could potentially be beer
Technical analysts and traders also suggest that a flagship lineup could be abuzz in the cryptocurrency market.
Bitcoin has been rising rapidly since October without a sharp decline. In previous bullish cycles, BTC has seen corrections from 20% to 30 on a regular basis.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said it is early to describe BTC’s uptrend as a compelling move.
“It could be an excellent build here in the markets. Not sure, but it’s still not a convincing upward move on $ BTC, “he said explained.
The confluence of Bitcoin’s extreme volatility and concerns about a potential top formation is amplifying the pressure on Ethereum and other altcoins.
The 1-hour price chart of Ethereum. Source: ETHUSD on TradingView.com
The outlook for ETH remains bright over the medium term
In the medium to long term, however, Ethereum’s outlook remains positive.
The launch of the ETH 2.0 mainnet is expected in December, which would greatly improve the scalability of the Ethereum blockchain network.
ETH has also operated as an “ultimate value fungibility asset” on Ethereum, giving it more value as the overall activity of Ethereum users increases.
“To be more a little bit more precise, $ ETH is the ultimate value fungibility layer / asset on Ethereum. All roads / pairs connect to (and through) ETH, and with good reason. It is the most valuable asset. liquid, secure, decentralized and ubiquitously accepted on the platform, “a pseudonymous Ethereum analyst known as” Aftab.eth ” She said.
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