Ethereum calms down against Bitcoin after BNY Mellon’s announcement of adopting digital assets.
Ethereum (ETH) price has had a strong few weeks against BTC. But in recent days, he has calmed down against Bitcoin.
Over the past few weeks, ETH has risen strongly as BTC consolidated. But there was also the opposite. That’s why we sometimes encountered some opposing correlations.
So Why Is ETH Struggling Right Now?
Bitcoin has risen significantly in the past few hours. Because, BNY Mellon announced that it will start offering Bitcoin services later this year.
Roman Regelman, CEO of BNY Mellon said:
“BNY Mellon is proud to be the first global bank to announce its plans to provide an integrated service for digital assets. There is increasing customer demand for digital assets. This is why the current situation is a tremendous opportunity to bring our service offerings to this new field with truth.”
The announcement boosted Bitcoin’s momentum almost instantly. Therefore, the price rose from $45,500 to $47,400. It finally hit an all-time high above $48,500.
In the same period, the ETH / BTC rate declined despite the related news. But in recent weeks, ETH has often risen more than Bitcoin during uptrends, alongside both major altcoins and DeFi tokens.
However, in the last 24 hours, Bitcoin has gained valuable momentum. Therefore, ETH lags behind BTC.
Willy Woo, a well-known in-chain analyst, also made a statement on the matter. Woo states that historically Bitcoin has been a much better “multi-cycle HODL.” This is why he emphasizes that ETH is a “more adequate mid-macro” swing trade.
This trend also applies to short-term cycles. Because while Bitcoin tends to increase steadily for more than one time, ETH is accelerating against either BTC. Or calming down.
What’s Next for Ethereum?
In the near term, traders and analysts are mostly optimistic about ETH’s short-term cycle.
For example, the CME ETH futures trading list did not reflect any news selling. This is a positive factor that could increase the chances of ETH’s rally to continue.
On day one of trading, the CME ETH futures market traded over $30 million in relatively high volume for day one of trading. Therefore, if institutional demand for ETH increases in late 2020, comparable to Bitcoin, ETH could see a wider rally in the coming weeks.
A trader known as “Pentoshi” said that altcoins and ETH should have much stronger momentum. But he suggested that they were calm at the moment.
“When I look at the altcoin market, it pushes me into a somewhat ambiguous atmosphere. Because compared to me, ETH and LINK have much more potential.”
For now, $1,800 level is valuable. Because this level remains the key level that must be broken for ETH to gain momentum against both Bitcoin and the US dollar in the foreseeable future.