{"id":563459,"date":"2020-08-26T19:26:21","date_gmt":"2020-08-26T16:26:21","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=563459"},"modified":"2020-08-26T19:52:01","modified_gmt":"2020-08-26T16:52:01","slug":"ethereums-correlation-with-bitcoin-starts-to-increase-once-again","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/ethereums-correlation-with-bitcoin-starts-to-increase-once-again\/","title":{"rendered":"Ethereum&#8217;s Correlation With Bitcoin Starts to Increase Once Again"},"content":{"rendered":"<p><strong>Quick take:<\/strong><\/p>\n<ul>\n<li><strong>Ethereum&#8217;s correlation with Bitcoin has started to increase once again.\u00a0<\/strong><\/li>\n<li><strong>In late June and July, ETH looked set to break away from Bitcoin&#8217;s influence due to the DeFi boom and investors anticipating ETH 2.0.\u00a0<\/strong><\/li>\n<li><strong>With a return of the correlation between Ethereum and Bitcoin, a drop by BTC could see ETH retest $365.<\/strong><\/li>\n<\/ul>\n<p>Ethereum&#8217;s 30-day correlation with Bitcoin has seen a steady increment in the final days of the month of August. This observation was highlighted by the team at Unfolded via the following tweet.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$ETH<\/a> correlation with <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BTC<\/a> going back up <a href=\"https:\/\/t.co\/5SS8ehTd7e\" rel=\"nofollow\">pic.twitter.com\/5SS8ehTd7e<\/a><\/p>\n<p>\u2014 Unfolded (@cryptounfolded) <a href=\"https:\/\/twitter.com\/cryptounfolded\/status\/1298541945787043840?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 26, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThis 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.<\/p>\n<p><a href=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th.jpg\"><img class=\"aligncenter size-large wp-image-563460\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-1024x482.jpg\" alt=\"\" width=\"1024\" height=\"482\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-1024x482.jpg 1024w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-300x141.jpg 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-770x362.jpg 770w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-240x113.jpg 240w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-717x337.jpg 717w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th-150x71.jpg 150w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/90-day-ETHBTC-Correlation-August-26th.jpg 1313w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" title=\"\"><\/a><\/p>\n<h2>What this Means For Ethereum<\/h2>\n<p>The months of June, July and August were eventful for Ethereum due to <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-locked-in-defi-hits-new-all-time-high-of-3-5m-eth\/\" target=\"_blank\" rel=\"noopener noreferrer\">the DeFi boom<\/a>. Furthermore, Ethereum investors and traders were optimistic that <a href=\"https:\/\/en.ethereumworldnews.com\/launch-of-ethereums-eth2-0-upgrade-might-not-happen-in-july\/\" target=\"_blank\" rel=\"noopener noreferrer\">ETH 2.0 would be launched<\/a> by the end of July. These two events coupled with a generally bullish crypto market environment had led <a href=\"https:\/\/en.ethereumworldnews.com\/ethereums-eth-correlation-to-bitcoin-is-gradually-decreasing\/\" target=\"_blank\" rel=\"noopener noreferrer\">to a drop in Ethereum&#8217;s correlation with Bitcoin<\/a>. This fact can be observed from the chart shared above.<\/p>\n<p>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.<\/p>\n<p>Further checking the charts, yesterday saw <a href=\"https:\/\/en.ethereumworldnews.com\/bitcoins-volatility-could-spike-as-62k-btc-options-expire-friday\/\" target=\"_blank\" rel=\"noopener noreferrer\">a return of Bitcoin&#8217;s volatility<\/a> albeit earlier than anticipated. Many crypto traders had assumed that Bitcoin&#8217;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.<\/p>\n<p>The downward move by BTC also affected Ethereum&#8217;s price which fell to as low as $369. This value is not too far off the previously identified <a href=\"https:\/\/en.ethereumworldnews.com\/ethereums-eth-bullishness-depends-on-the-365-support-zone\/\" target=\"_blank\" rel=\"noopener noreferrer\">support of $365<\/a>. 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.<\/p>\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quick take: Ethereum&#8217;s correlation with Bitcoin has started to increase once again.\u00a0 In late June and July, ETH looked set to break away from Bitcoin&#8217;s influence due to the DeFi boom and investors anticipating ETH 2.0.\u00a0 With a return of the correlation between Ethereum and Bitcoin, a drop by BTC could see ETH retest $365. Ethereum&#8217;s 30-day correlation with Bitcoin has seen a steady increment in the final days of the month of August. This observation was highlighted by the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":561910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[823,108120],"tags":[1233,7092,1322],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563459"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=563459"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/561910"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=563459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=563459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=563459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}