With the latest market price trends are moving and as Ethereum is edging closer to the update the question, can Ethereum impact alt season 2020 is gaining importance.
2020 has proven to be an optimal year so far regarding the crypto-markets’ bullish rally; we saw Bitcoin’s price surge from $7,000 to $10,000, and altcoins like Ethereum and XRP also showed a great increase in value with many major-crypto assets gaining greater profit than Bitcoin.
There was an unexpected drop that halted the collective bullish trend, but it provided us with some crucial information regarding individual cryptocurrencies’ price fall.
The slump caused Bitcoin to fall below $10,000; altcoins were expected to follow the same path. However, data showed that altcoins still outperformed Bitcoin over the past three weeks.
Bitcoin only increased by 2.2 percent in February, while Ethereum continued to increase by over 10 percent in the same time frame. At the press time, Ethereum had a value of almost $262 with a market cap of $28.3 billion and a 24-hour trading volume of around $10 Billion.
The above chart shows that the monthly performance of mid-cap and small-cap digital assets also exceeded Bitcoin. This resulted in the King coin’s dominance index plummeting down to nearly 63, as stated by CoinMarketCap.
Volatility may deffer Ethereum impact?
Skew’s ETH-BTC Realized Correlation chart shows that Ethereum’s price has disassociated from Bitcoin since the inception of 2020. The correlation percentage has decreased from 90 to 74 percent from the start of the year; this can have severe effects on the Ethereum impact over the alt season.
This separation has resulted in a change in Ethereum’s price spread percentage, with regards to Bitcoin. Since the beginning of the year, Ethereum has risen to nearly 3 percent, from the last observance on 1st July 2019. This surge strengthened Ethereum’s progress.
Having said that, the recent volatility over the previous week may end up overruling ETH’s previous success. The implied and realized volatility both recently shot up to 5 percent and 4.1 percent, respectively, which may cause a price swing. This minor bearish trend could end up scaring away anxious investors, leading to a price fall.