Il price of Ethereum is trying to cope with the Bitcoin, which for its part is growing at a good pace against the US dollar. Similar behavior has already occurred throughout the month of October, when BTC went up, while ETH stagnated for an extended period. But why?
According to some analysts, the most likely reason behind the stagnation of the Ethereum in a Bitcoin rally scenario is that BTC is attracting increasing volume from the market cryptocurrency.
In exchange major there is a huge gap between the volume of Bitcoin and other major digital currencies, and this trend could occur due to the lack of resistance between the $ 16 and $ 20 all-time high. As such, there is an influx of traders aggressively betting that BTC will hit $ 20.000 in the short term.
Now, in 2020 we have verified multiple times that when Bitcoin goes up, Ethereum and other altcoins don't go up. But, when BTC falls, altcoins fall in tandem with BTC!
This cycle has meant that alternative cryptocurrencies have largely underperformed against both Bitcoin and the US dollar in the past 24 hours.
That said, while Ethereum's medium- and long-term outlook remains positive, the cryptocurrency project will face several rather important challenges in the short term. In fact, in December the launch of ETH 2.0, which would greatly improve the scalability of the network blockchain of Ethereum, but in the last few hours doubts have grown as to whether the project will really see the light so soon, given that only 10% of the staking deposits needed for the launch have been obtained for the moment.
A disappointment on this front could trigger new bearish waves for ETH and, perhaps, part of the market is already discounting this hypothesis.