Bitcoin and Ethereum Are Falling in Tandem, but BTC Is Winning
The short-lived Bull rally that occurred before September 13 collapsed just before the Ethereum network merged with Beacon solidifying the switch to the PoS consensus mechanism and changing the landscape of the crypto industry forever. We did not see a hard fork with thousands of miners going their own way. We did not see a tragic technological failure of the network, but it seems that investors did not see anything promising either.
Ethereum loses 15% over three days
During the first six hours after the merge was announced to be completed, ETH lost over 13% of its value falling from $1650 to $1450. Some analysts hoped that the price will correct itself and the asset will bump back to its monthly high, but reality put them all in place. The price did not recover. At the time of writing, it is hanging dangerously close to the $1400 support line that was nearly breached on September 16.
At the same time, Bitcoin managed to hold over the $19K mark and even gained about 7% since September 16. It looks like crypto investors are seeing BTC as a more reliable bet and slowly moving their capital away from Ethereum.
It is too early to make any predictions, but this particular speculation sounds convincing considering that the merge was a hype mechanism that some Bulls used to generate buzz around ETH ahead of dumping large amounts on the market and crashing the price. Cardano is also gaining traction now as it prepares for its own crucial Vasil upgrade.
Bitcoin is still the flagship coin of the crypto industry. The flippening is certainly something that we should not expect. The surge in ETH price did not happen, bears are now dictating the trend.
Can Ethereum recover in the nearest future?
The Bull Run in the middle of August brought optimism to many ETH enthusiasts, but it was short-lived. Certainly, ETH won’t go anywhere, but whether it will return to prior heights is a different question. A lot depends on the interest in Ethereum 2.0 from developers, users, and investors.
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