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The second-largest cryptocurrency is no exception to the wrath of Bitcoin; price of ETH has collapsed by an excess of 14% in the last 24 hours, which is a result of Bitcoin’s drop. The price of ETH, at press time, was $179.99 and had a market cap of $19.5 billion.
Why the Drop?
Bitcoin has been the dominant crypto for as long as one can remember. All other altcoins that came after this are correlated to Bitcoin and its price. Altcoins blindly follow Bitcoin’s path; same can be said for Ethereum.
Source: Coinmetrics.io
As seen above, Ethereum’s Spearman correlation is soaring at $0.84, which is very close to its all-time high of $0.92.
Short to High Time Frame
Source: TradingView
Ethereum has been stuck in a falling wedge for over two months, and from the looks of it, there are still two to three bounces before a breakout. The breakout from the wedge is going to be a definitive surge.
Target
- The first target after the breakout would be $224, which will take an approximate of 2 to 3 weeks from today.
- If the bullish momentum is in excess, the target to be as high as, $275 and it could materialize in the coming week after the initial surge.
- The long term target for Ethereum would be $315, which would happen in four to six weeks.
Disclaimer
All of these predictions are extremely dependent on how Bitcoin’s price unfolds in the next couple of days. It could easily be rendered invalid if the price of Bitcoin takes another major fall.