Ethereum's price has shown weak correlation with Bitcoin, allowing ETH to exhibit independent price dynamics. Meanwhile, significant transfers by major holders may put pressure on the market.
Ethereum's Correlations with Other Assets
The price correlation of Ethereum with BTC stands at -0.04, indicating a weak dependency of ETH on Bitcoin. In contrast, DOGE shows a strong correlation with ETH, while AVAX and SHIB display high correlation values as well. These strong correlations with ETH may be due to overlapping technological similarities.
Massive ETH Transfers by Whales
Recently, a major address 'machibigbrother.eth' transferred 4,413 ETH to Binance, totaling approximately $13.84 million. Such large transfers may indicate preparations for selling, potentially leading to a temporary decline in Ethereum's price due to increased supply on the market.
RSI Analysis: Potential Ethereum Rally
Historically, notable RSI peaks have coincided with critical price highs. The current RSI level suggests a potential rally, although a reversal and consolidation of price remain possible. If RSI continues to rise and breaches a critical threshold, Ethereum could reach new heights. However, a sharp RSI reversal could indicate an impending correction.
If Ethereum's price is truly independent of Bitcoin's dynamics, it could be a strategic advantage during BTC's decline. However, massive whale sell-offs may exert short-term pressure on ETH's price.
