Ethereum Price Largely Uncorrelated To Bitcoin, Why Whales Are Exiting? – BitRss

Ethereum price exhibited minimal correlation with BTC ($96,642.60) indicated by a 30-day price correlation of just -0.04.

This detachment suggested that ETH ($2,819.44)’s movements were independent from Bitcoin’s.

This allows it to follow its own price dynamics. Meaning while BTC might experience fluctuations, Ethereum could remain stable or move in an opposite direction.

DOGE ($0.25), on the other hand, showed a stronger correlation to Ethereum with a value of 0.67.

This implied that DOGE was somewhat aligned with ETH, possibly reflecting similar market reactions within the same periods.

Avalanche (AVAX ($26.54)) and Shiba Inu (SHIB ($0.00)) display notable correlations of 0.93 and 0.79, respectively, with Ethereum.

These strong correlations indicated that as Ethereum’s price trends or shifts, similar patterns were likely in the altcoins, possibly due to overlapping technological similarities.

Tether (USDT ($1.00)) showed a negative correlation of -0.39 with Ethereum, highlighting its role as a stablecoin generally moving inversely relative to the volatility in the cryptocurrency market.

The impact of Bitcoin’s minimal correlation with ETH could be beneficial during times of BTC’s price decline, as ETH may not necessarily follow, possibly maintaining its value or even appreciating.

If ETH does not correlate with a rising Bitcoin, it might miss out on potential gains driven by general market uplifts.

Whale Move Massive ETH Position

Over the past week, a whale address labeled “machibigbrother.eth” executed significant transfers, depositing a total of 4,413 ETH to Binance, valued at approximately $13.84M.

These transactions occurred at intervals, with the largest single deposit being 1.385K ETH worth $4.31M.

This was followed by deposits of 1K ETH each four and six days ago, valued at $3.1M and $3.06M respectively, and finally 1.027K ETH worth $3.36M also six days ago.

This pattern of substantial deposits typically indicated preparatory steps for selling, which could exert downward pressure on Ethereum’s price.

The transfers align accumulation of such large amounts on an exchange platform commonly preceded increased selling activity, potentially leading to short-term price declines due to the sudden surge in available supply.

Considering Ethereum’s low correlation with Bitcoin, currently at -0.04, the movements of “machibigbrother.eth” could reflect a strategic decision independent of Bitcoin’s market dynamics.

This low correlation suggested that decisions by major ETH holders to liquidate positions may be based on factors specific to ETH itself or broader market conditions, rather than being directly influenced by Bitcoin’s price movements.

If Ethereum’s price continues to decline, and the holder’s activity results in further selling pressure, it might confirm a bearish outlook for Ethereum in the short term.

Ethereum Price: RSI Signal Play Out?

Reviewing past data, notable RSI peaks in 2017 and 2019 a two-week index coincided with critical price highs, while a similar peak in 2021 marked the beginning of substantial rallies.

The recent surge in the RSI to levels comparable to these historical peaks suggested an impending rally.

The RSI is approaching a critical threshold, which previously indicated overbought conditions that led to a rally.

The pattern suggested that if Ethereum’s RSI continues to rise and breaches this threshold, Ethereum could experience a significant increase in price, potentially surpassing previous highs.

Conversely, there is a potential for reversal for Ethereum price. If the RSI peaks and reverses direction as it has in past cycles, it could signal a retracement or consolidation period instead of a continued rally.

This divergence, where the price does not follow through with the RSI’s prediction, could lead to a possible pullback in price.

Predictively, if Ethereum’s RSI crosses into overbought territory and sustains, we might see prices climb towards new highs, possibly breaching $5,000.

However, a sharp reversal in RSI could indicated that the current price levels were unsustainable in the short term.

Potentially this leads to a correction towards lower support levels around $3K or below, especially if broader market conditions do not support a continued bull run.

The post Ethereum Price Largely Uncorrelated To Bitcoin, Why Whales Are Exiting? appeared first on The Coin Republic.