- Ethereum closely mirrors Bitcoin’s movements, making it increasingly sensitive to a possible correction.
- As whales continue to dominate, it will be crucial to keep a close eye on their daily actions.
Bitcoin [BTC] is up almost 3% over the past 24 hours, hitting a new all-time high of $106,488. As the new year kicks off, momentum is clearly increasing.
Not to be outdone, Ethereum [ETH] is making its own move, approaching its annual high of $4,000. Traditionally, ETH has mirrored the movements of BTC, but shaky hands and over-positioning the market are some interrogate if Bitcoin’s latest surge signals an impending top.
If so, could this be the moment when ETH breaks free from BTC’s shadow? As the market matures, is a difference between the two now more possible than ever?
Bitcoin still has the lead over Ethereum
2024 is coming to an end and looking back, it has been a year of major milestones for Bitcoin. In the first quarter alone, Bitcoin rose from $49,710 to an all-time high of $73,000 in just 30 days.
Ethereum was not on the sidelines either. During the same period, ETH also broke past $4,000, reaching levels not seen since 2021. But here’s the catch: just as Bitcoin reached its peak, ETH followed suit.
In just one week, ETH plummeted to around $3,100, with daily drops of up to 10%.
Source: TradingView
Fast forward to now, and an interesting development has caught the attention of AMBCrypto. While Ethereum’s price action on the daily chart continues to mirror Bitcoin’s movements, its price swings – both ups and downs – have become increasingly sharp and volatile.
Therefore, regaining $4K will not be an easy task for Ethereum. The initial pump will likely come from Bitcoin, but holding that price and converting it into solid support is proving to be a challenging task.
In this scenario, it seems likely that a ‘healthy’ pullback will flush out weak hands. Moreover, the purchasing pressure is on various levels premiums hasn’t surged yet, suggesting either capital is flowing into Bitcoin or FOMO hasn’t fully kicked in yet.
Unless this trend reverses, Ethereum will likely continue to experience volatility on the daily chart, with sharp price swings making it difficult to predict clear short-term direction.
Whales are pulling the strings of ETH
AMBCrypto has uncovered a major development that could have both short- and long-term implications for Ethereum. The concentration of Ethereum in the hands of whales has reached 44%, putting it dangerously close to the 47% held by retail investors.
Whales typically manipulate the market by buying at the bottom and selling at a premium, but over the past 90 days their order books have become increasingly inconsistent.
Source: IntoTheBlock
The impact on Ethereum was clear: for two consecutive days, these whales deposited 40,000 ETH on exchanges as ETH reached $4,000 on December 6 – the same day Bitcoin surpassed $100,000 for the first time.
This led to a sharp 7% drop in ETH the next day. While these whales have been accumulate ETH, they skillfully timed the “dip,” only to cash out just before Ethereum could breach crucial psychological targets and execute a textbook manipulation strategy.
Read Ethereum (ETH) Price Prediction 2024-25
With all these factors playing a role, a relapse seems increasingly likely. Analysts are predicting a Bitcoin correction, which would likely drag Ethereum down as well.
However, if FOMO takes over again, both retail and major players could seize the opportunity to buy the dip at $3,700, where there were 4.6 million tokens earlier scooped up.
