Currently cryptocurrencies they are again in correction. It appears that the decline may bring spot prices to new local lows in the long term. However, the last collapse caused that ETH compared with BTC much more fell. Why is that so?
On the chartss below you can see the percentage appreciation of the prices for the last one growing trend and also the strength of the current correction. BTC price has fallen by approx. since the last maximum 15% while ETH lost approx 21%.
BTC spot price. Source: TradingView
ETH spot price. Source: TradingView
The price of ETH is falling more because it was also more dynamic during the uptrend. The valuation of ETH amounted to 130% while BTC appreciated only by 43%. So if we compare the last dip and the rise, we can see that the price of ETH is still performing better, despite the higher current correction.
Why did ETH grow so fast?
The price of ETH increased mainly due to the announcements of exactly when the long-awaited The Merge, the network upgrade, will happen. In more than 3 weeks, the network will be upgraded to Proof of stake, like you they informed. However, it is necessary to pay attention to the sell news event, when traders sell right during the ongoing event and the price, paradoxically, starts to fall. However, this upgrade should have a positive effect on the price, especially in the long term.
Do you like this article? We publish daily the latest information (not only) from the world of cryptocurrencies. Follow us also on Twitter and don’t miss new articles.
- CryptoQuant Analyst: Bitcoin Nowhere Near Its Peak – Buckle Up, Hodlers! - December 21, 2024
- Chainalysis: $2.2 Billion Lost to Crypto Hacks in 2024 - December 21, 2024
- Bank of Japan leaves interest rate unchanged: Impact on the macroeconomy and the crypto market - December 20, 2024
