Ethereum’s ratio to Bitcoin has risen from 0.052 to about 0.054 BTC, while its dollar price has reached $1,900. This is the highest it has been in four months, with the price increase being attributable to a variety of factors, some of which are unique to ETH.
The Celestia airdrop is very likely the most significant. This offered around 170,000 Ethereum users $500 just for being Ethereum users. With the attention that Celestia received during the airdrop earlier this week fading, many of them were presumably insta-sold for ETH.
Celestia’s market cap is currently $330 million, indicating increased demand for ETH. Small in comparison to ETH’s market valuation of $228 billion, but maybe significant enough to shift the ratio.
Another reason is that ethereum has lagged behind bitcoin, which has gained 30% this month vs 17% for ETH.
This has happened before when bitcoin led gains, as it did lately owing to anticipation over the BlackRock spot ETF, but ethereum always catches up eventually.
Not least because, in this situation, if bitcoin receives a spot ETF, ethereum will as well because ethereum futures ETFs have been approved, thus whatever advantage bitcoin may have is just transitory.
For example, on Friday, the Securities and Exchange Commission (SEC) acknowledged the Invesco Galaxy spot eth ETF registration. The deadline for approval or rejection is in May, a few months after bitcoin’s initial public offering in January.
While bitcoin is stumbling at resistance near $36,000, many cryptocurrencies have witnessed gains against BTC, with Sol in particular jumping 80%. As a result, ethereum’s ratio now has its turn, at least for the time being.
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The Devconnect week-long ethereum event in Turkey, which begins on November 13th, is also approaching.
This year, Ethereum will not conduct a Devcon, with the Devconnect being different in that it is primarily focused on coders.
However, because there will be no Devcon, this Devconnect will serve as eth’s main event for the year. Its weekly agenda is jam-packed with far too many events.
It remains to be seen whether this will have an impact on the pricing. There may be announcements, however the Ethereum Foundation hasn’t quite hyped the event.
All three in combination have provided ETH some support for the day, but bitcoin may also be benefiting from the macro picture, and eth is back to inflationary for the day.
Its supply increased by 0.16% on this quiet Sunday, but it is down by 0.005% for the week. As some ethereum usage attempts to shift to second layers, the picture becomes more complicated.
Overall, touching $1,900 is a good sign that eth is about to break through resistance at $2,000. It will most likely do so in tandem with bitcoin if they manage to overcome the resistance levels, therefore eth may also fall under that level.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.