Ethereum’s price has been moving in a straight line for the past few hours while bitcoin’s price has gone straight up from $2,300 to around $2,700.
Ethereum followed initially, rising from $210 to around $230 while bitcoin was at around $2,500. But then, as bitcoin went up and up to a high of $2,950, ethereum sort of just drifted off.
As can be seen, the two currencies were moving up or down in unison, but then suddenly bitcoin decouples, rising higher, while ethereum moves sideways.
Which is interesting because it hasn’t really happened before. The two usually either go up and down at the same time or are inversely correlated, so what happened this time?
If ethereum had fallen, the obvious answer would have been traders were going to bitcoin for added gains. If it had risen further, we could have said it was just following bitcoin. So a sideways might suggest a mixture of both.
As a good move would have been to turn all your eth into bitcoin at the first big green candle before the sideways. Something which at least some traders probably did do, while others may have thought eth will rise too so it wasn’t necessary.
Ethereum could have done so, but there would have been pressure from ethereans moving to bitcoin for the time being, thus the two sides may have kept it at balance in a straight line.
The question is what happens next. With segwit locked-in and its biggest opposers, like Bitmain’s Antpool and ViaBTC, now voting for segwit proper to activate it in the Bitcoin Core client, bitcoiners might not have much left to talk about for a month or so until segwit goes live.
Moreover, there is still August the first on the way, when at least one client will hardfork and create Bitcoin Cash, so the bulls might be followed by bears or a sideways, which may give ethereum some fuel.
Alternatively, bitcoin might go past its all-time high, but as its community remains divided, with its future still uncertain, and questions on how the upgrade decision was made, it remains to be seen whether it can do so.
Meanwhile, ethereum may continue going sideways, but if bitcoin traders front-run or take profits they may opt for eth instead of fiat to wait out August 1st.