Something happened yesterday that hasn’t happened in a long time. So long, in fact, we completely forgot what it looks like.
During a very sunny London afternoon, bitcoin suddenly decided to drop with some speed by around $500 to below $7,000.
During that same sunny afternoon, eth barely moved. It dropped a bit from $417 to around $404, but had this been even a week ago, it would have dropped far more.
That’s because since around September last year, ethereum has been very much under the shadow of bitcoin.
In fact there was a time during autumn 2017 when ethereans were begging to follow bitcoin. They eventually did, with a bitcoin induced price rise to around $1,420 following in December-January.
Since then, ethereum has basically been pegged to bitcoin, but there was a time when eth ruled and bitcoin followed.
Spring 2016 was one such time. Spring 2017 too. This year, however, there was no eth spring. Why, is a good question without a good answer.
One reason might be that the rise to $1,420 was a bit artificial. When bitcoin dived, eth tried to take the lead and have its own bull run in January, but at that point it had gotten a bit too much.
The currency, thus, has now after months returned to the price level it gained by itself, the $420. It is at this level that eth is seemingly saying they don’t care about bitcoin anymore.
The above chart tells a story far better than we can. Since 2016, eth and btc have been in a dance. You can see there, eth initially leads. Then bitcoin takes over and eth’s ratio falls. Once bitcoin gets tired, eth roars in 2017, followed by bitcoin roaring even louder in December.
Those final two triangles are eth trying to get a lead in January, but failing, and then eth having a mini-lead in April during a mini bull-run to $800, which again was seemingly a bit too soon.
Eth’s ratio falls at the closing of the triangle on bitcoin ETF speculations, but SEC did not want to play nice so eth has now seemingly got back to its senses.
It thus refused to budge yesterday. Maybe news that full casper might be closer than we think had something to do with it. Perhaps everyone reminded themselves just how much development is going on in eth, or maybe they don’t care about any of that and it’s all due to them triangles.
Who is to know, but eth standing up to bitcoin is a rare sight we had completely forgot. Whether that was just a one day thing, or a beginning of a trend, remains to be seen, but eth has plenty to look forward to now.
Starting with Metropolis, Devcon, then Casper, Sharding, maybe some Plasma somewhere, perhaps even a Raiden. Not to mention all the dapps and whatever kids might come up with when hacking all them smart contracts.