Ethereum / Breaking News / Analytics
Ethereum (ETH) has started to decline sharply towards the bottom of a descending triangle as we can see on the weekly chart for ETH/BTC. This is a very bearish development but it could get even more bearish if the price ends up breaking below this triangle. Investors are quickly losing their faith in altcoins as Bitcoin (BTC) continues to outperform the rest of the market. This might be accelerated by investors trading their altcoins for Bitcoin (BTC) to cash out before the next downtrend. With Bitcoin (BTC), they can sell their stash on an over the counter (OTC) market but with altcoins, they have to use exchanges like Binance or Bitfinex. Moreover, millions of printed Tether (USDT) keeps on being converted to Bitcoin (BTC). The past few weeks has shown the bulls that Bitcoin (BTC) is the coin to be holding not Ethereum (ETH) or other altcoins.
It is unfortunate but true that most of the people in this market are in it for the money. They don’t care if Ethereum (ETH) is centralized, decentralized, scalable or not scalable. All they care about is what kind of returns they can get on their investment. So, if Bitcoin (BTC) continues to outperform the market, they have reason to move into Bitcoin (BTC). The way we see it is that a lot of whales got into altcoins around the end of December, 2018 when BTC/USD found a temporary bottom. Since then coins like Litecoin (LTC) have had impressive growth. However, now they need to reduce their exposure and slowly cash out. There’s no better way to do that than moving to Bitcoin (BTC) because moving directly to Tether (USDT) could mean they might miss out on some gains.