This observation is further confirmed by visiting the ETH/BTC correlation chart courtesy of Coinmetrics. The latter platform only goes as low as the 90-day correlation but the increment can still be visible via a small change in gradient of the chart to an upward trajectory.
Therefore, an increment in the correlation between Ethereum and Bitcoin means that it is business as usual in the sense that where BTC goes, ETH will follow.
Further checking the charts, yesterday saw a return of Bitcoin’s volatility albeit earlier than anticipated. Many crypto traders had assumed that Bitcoin’s volatility will return a few hours to the expiry of 62,000 BTC options on Friday, August 25th. However, the King of Crypto pulled a fast one on traders and dipped to as low as $11,100 three days earlier. BTC has since bounced back to $11,400 levels.
The downward move by BTC also affected Ethereum’s price which fell to as low as $369. This value is not too far off the previously identified support of $365. This in turn means that any additional drop by Bitcoin will mean that ETH will most likely retest this area or even lose it in the days to follow.
As with all analyses of Ethereum, traders and investors are advised to use adequate stop losses and low leverage when trading ETH on the various derivatives platforms.