The value of all cryptocurrencies is constantly changing. Whether it’s Bitcoins or Ethereum, we can observe the constant ups and downs of their prices. Recently, the value of both currencies has increased. Therefore, analysts warn that soon Ethereum’s prices may fall sharply.
The high increase in the value
Recently, the value of Ether reached 225 dollars. This is 150% more than the March drop in value of this currency. However, experts warn that the current high prices will not last long and we will see the ETH value fall again in the near future.
This is the assumption made by a prominent crypto trader who warned that the value of XRP will fall by half – for a potentially long period of time. As we can see, he was right.
Will ETH really count the fall in value and what factors have a significant impact on Ethereum’s value?
Everything depends on Bitcoin
The value of Ethereum largely follows the value of Bitcoin. Depending on whether BTC will pass the price increase or decrease – after a few or more hours we can see similar actions in the ETH value. This is not a full dependence, of course, but looking at the monthly chart of the values of both these currencies, we can observe significant similarities.
Correlation between cryptocurrency prices
Prices of the cryptocurrency are influenced by many different factors, such as expert predictions or various political events. They change almost all the time depending on how much investors want to pay for them. The value of other cryptovalutes, especially Bitcoin, also has a significant impact on their prices. It is the most important on the market and affects other cryptovalutes such as Ethereum, XRP or LTC. The strongest correlation between the value over the years is shown by ETH and BTC.
Correlation between bitcoin & ether has been hovering around 90% for almost two years – not bullish! pic.twitter.com/oRSCVe1tos
— skew (@skewdotcom) November 4, 2019
However, no one should blindly believe that the ETH value will always follow BTC prices exactly. It is always worth paying attention to expert research and market analysis.
Ethereum price increase
Despite the recent significant increase in ETH prices, experts seem to be sceptical that the currency will manage to keep such a high value. They predict that Ether prices will fall down in the near future. Will they be right? We will see.