The king of altcoins has shared a close relationship with Bitcoin ever since. Needless to say, every move the King Coin made had some effect on Ethereum. However, this dynamic is starting to change, and this may bear a good outcome for the second generation of cryptocurrencies and their investors.
Ethereum Rise Beyond Bitcoin
Over the past two weeks, the cryptocurrency market has oscillated between up and down. Although in a large time frame, Ethereum has made significant gains, recovering all the losses it recorded in June.
In light of improving market conditions, ETH has also improved its position and is trading at $1,721 at the time of writing. After its recent 8.1% rally, the altcoin is close to a critical territory. This would prepare Ethereum to pool until the merger arrives on September 19.
The Fibonacci retracement from the all-time high at $4811 to the $880 low has created critical areas for Ethereum, and the altcoin is close to one of them. The 23.6% Fibonacci level coincided, which acts as a solid base/support for any rally. In fact, at the $1,807 price level, ETH looked very close to breaking out and flipping into support.
The reason for this rise is twofold. The first is the lack of investor activity as ETH holders have been HODLing for over a month now. The rate of token change has decreased, which is a good thing because conducting transactions in such a volatile environment will inevitably lead to losses.
Since that didn’t happen, ETH was able to recover on the charts. Evidence of this can be found in the gas charges of the network as well.
The lack of trading last week has led to lower costs that are expected to rise once FOMO begins consolidation.
The second reason is the consolidation itself, which will bring about a tectonic shift into the second largest cryptographic network. As the update date approaches, the hype is also rising, which is why the growth of Ethereum is outpacing the growth of Bitcoin.
At the time of publication last year, BTC was valued at $41,000 at press time. Today, she is struggling to cross $24,000. Ergo, if ETH splits from BTC, you will be in a much better position.