In 2019, there has been a great correlation between Bitcoin and Ethereum. This correlation has seen some go as far as suggesting that Ethereum has broken out of ‘altcoin’ status. The pacesetter though has been Bitcoin with its movement dictating that of Ethereum. When Bitcoin has soared, Ethereum has too despite at times other altcoins not being positive. Similarly, Ethereum has followed Bitcoin downwards.
As we have seen Bitcoin’s bullish momentum has died down, it looks unlikely that Ethereum will soar anytime soon. As we have reported, Bitcoin has failed several times to rally above $9,500. As a consequence, we could soon see Bitcoin slip below $8,500, retesting the $8,000 support. At the time of writing this, Bitcoin is clinging on to the $8.8k position after shedding 5% in the last 24 hours.
Ethereum, on the other hand, has lost a little under 2% and is trading for $185. The altcoin has in the last few weeks struggled to stay above $190. With an all-year high price of just over $330, the bulls are determined to see it climb above $200 and continue surging to highs of $250 before the end of the year.
Ethereum 2.0 Launch A Potential Catalyst
One trigger that could see Ethereum soar to all-time highs is the launch of its network upgrade dubbed Ethereum 2.0. The upgrade is set to update and resolve some of the issues that have limited the network in recent times. one as such is scalability with the network losing out to networks like NEO and TRON.
The Ethereum community believes that the launch of the new upgrade will be monumental and set the project on a successful path. The launch date of the upgrade, however, remains unconfirmed. Those following it closely expect that it will be launched in January 2020.
Until this launch, Ethereum is unlikely to be strongly bullish unless triggered by Bitcoin reach of a new all-time high or the return of the altseason which also looks unlikely as discussed in an earlier post.