Ethereum [ETH] has suffered the brunt of the market-wide correction game this week. The market saw the biggest dip since last year’s Black Thursday crash. With the wounds still fresh, is it time to buy the dip?
The second-largest crypto-asset fell to $2,078 after depreciating by almost 15% in one day alone. However, Ethereum whales are pretty unfazed by the market going downhill. In fact, the number of ETH whale transactions above $100k went on a rapid surge rapid in the last few days. The value incremented to levels last seen in January 2018 right after the digital asset hit an all-time high of $1,440 during that bull season.
Fast forward to the 2021 bull run, since setting ATH of $4,372 on the 12th of May, the digital currency has negated its gains by more than 50%. This mirrored a similar path that Ethereum went on back in the 2018 bull run when it formed a double top pattern after eventually losing nearly 50% to $755.
This was revealed by the popular crypto-analytic platform, Santiment which tweeted,
“The amount of Ethereum whale transactions (greater than $100,000 in value) ballooned to levels not seen since January 2018 this week. After hitting an All-Time High of $4,358 just 9 days ago, ETH dropped to $2,015 (a -53.8% slide) in just one week.”
Ethereum Correlation With Bitcoin Bounces Back
According to the latest Coin Metrics chart, the BTC-ETH correlation has climbed back to 0.76. The rise in the correlation between the two top cryptocurrencies essentially signaled that ETH would now closely mimic BTC’s price action. This comes after weeks of diverging price movements.
If the bull season has indeed ended for Bitcoin, this could also adversely affect Ethereum. But what does it mean for the broader altcoin market? Since ETH has historically swayed the price movement for alts, a rising correlation to the king coin which [if topped out] could potentially invalidate signs of an altseason.