The correlation between Bitcoin and Ethereum gets closer and closer as ETH reaches a new all-time high

Ethereum’s price action has broken out of its consolidation period on the charts recently. In fact, since the beginning of April the story has been completely different, given the huge bullish momentum forecast for altcoins. The aforementioned increase in value has spurred a rise in price by more than 36% over the past two weeks, which also caused ETH to break down of $ 2,500 resistance, establishing new ATH levels in the process.

At press time, ETH is trading at $ 2,450 with a market cap of $ 282 billion. ETH hit its latest ATH of $ 2,544 a few hours ago after gaining 18% in 3 days. It is worth noting, however, that minor corrections have begun to happen at press time, with the latest price candles flashing bearish signals.

With ETH currently climbing to levels not seen before, the coin’s fundamentals are looking good too. According to data provided by Glassnode, the number of active addresses (MA 7d) just climbed to a three-year high of 34,736,798. The increase in active addresses is always a good indication of the token price and indicates that there are more participants in the market.

While whales can drive prices north, they can also undo the gains and put the token price at risk of a massive sell-off. Interestingly, in the case of ETH, Glassnode also points out that addresses with more than 32 ETH are currently experiencing a significant decline.

The data shows that the number of addresses holding over 32 ETH has just hit a 13-month low of 111,459. The last time such a low was seen was April 12 when the index showed only 111,466 addresses had this amount of ETH.

However, Ethereum continues to trade synchronously and correlate with Bitcoin, with the price of BTC being around $ 62K at the time of writing. Data provided by CoinMetrics has emphasized that the correlation between BTC and ETH continues to be quite high and is notably 0.77 at press time. Over the past three months, the correlation has increased, with a similar increase from 0.55 earlier this year.

A high correlation with Bitcoin may not just be the key to Ethereum’s new ATH capabilities and breaking out of strong psychological drag in the market. As the current non-ATH price discovery continues, the correlation factor may be key to understanding whether ETH is able to maintain such positions or if another price correction is to come.

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