Highlights
Ethereum (ETH) price has shown no affinity to trend higher and is due to Bitcoin’s (BTC) sideways movement. Since ETH Foundation’s nearly $94 million ETH sale on August 23, Ethereum has shed 14% but currently trades around $2,500.
The 30-day correlation coefficient between Bitcoin and Ethereum prices hovers around 0.85. This high value represents that movement in BTC price influences ETH price. Therefore, if the pioneer crypto moves sideways, Ether will follow.
Since BTC is also highly sensitive to macroeconomic policies from the West, investors need to pay attention to the US Federal Reserve and its moves.
Since its inception, spot Bitcoin ETF has seen net positive inflows compared to spot Ethereum ETF. On the contrary, the flows for ETH ETFs are declining, showing a lack of interest from market participants.
This is due to the simplicity of Bitcoin’s narrative, which is digital gold, unlike Ethereum’s world computer. It’s a hard elevator pitch often missed by aged investors who prefer ETFs as their investment vehicles.
The 2023 bull run caused meme coins to explode in popularity, and Solana seized the opportunity and overshadowed its competitor and leader, Ethereum. Top meme coins like dogwifhat (WIF), Popcat (POPCAT), Bonk (BONK) are all based on the Solana blockchain and have allowed investors to go from rags to riches in a few days. As a result, many investors left Ethereum for Solana, which also explains the lackluster performance of ETH. Furthermore, these SOL-based cryptocurrencies will likely gain more traction as the bull run progresses due to their recency and popularity.
To conclude, investors need to understand that some of these reasons are why there are no Ethereum price forecasts that hint at a retest of the all-time high (ATH) of $4,093.
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