Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Bitcoin price is moving up as the halving is just 3 days away. But will Ethereum follow the trend and rise along with Bitcoin?
Bitcoin’s third halving is only four days away. Unsurprisingly, the price of Bitcoin has been climbing and is expected to explode after the event. Usually, Bitcoin carries the rest of the crypto market on its shoulder and pulls other assets up as it rises. Ethereum seems to be following Bitcoin’s trajectory and is also on the rise. As a result, many are currently wondering whether or not Ethereum (ETH) will keep going up as Bitcoin inches closer to the halving.
Ethereum Price Is Rising
Ethereum formed a good enough support base at $200 and increased from there. Currently, ETH is trading at $212.75, after scaling resistance levels at $208 and $210. It had earlier crossed the $215 mark and is heading towards $218, before correcting back down.
The gain Ethereum has seen has been overlooked because of the attention Bitcoin is receiving, especially with the halving. In the last seven days, at least, ETH has not dropped below $200. It’s unlikely that a crash like that will happen, except the entire crypto market crashes. With the upcoming Bitcoin halving, this is highly improbable. Nevertheless, the next support level is at $205, with a resistance level at $220.
Bitcoin Prepares for Halving
Bitcoin recently broke the $10,000 level and began the journey towards $10,500. It however failed and retraced its step. Regardless, there’s a good enough chance that it will break the same level. After dropping around $9,867, the king coin is currently trading at $9,963.13 and has climbed over 5% in the last 24 hours.
Apart from the specific price, activity on the Bitcoin network is on a steady rise. The number of active addresses has been increasing steadily, along with the network’s hash rate. According to billionaire Mike Novogratz in a recent tweet, this will not be Bitcoin’s 2020 high.
Exciting day for $btc. I want to point out that we aren’t even at the years highs. This rally is just starting. Don’t miss the bus.
— Michael Novogratz (@novogratz) May 7, 2020
Will Ethereum Rise with Bitcoin for Halving?
Generally, Ethereum’s volatility level is still somewhat low. This reduces the possibility of a major swing happening suddenly. However, it doesn’t altogether remove the possibility.
It’s easy to suggest that Ethereum’s recent increase is because of Bitcoin’s halving. History does suggest that altcoins, at least the major ones, will spike along with Bitcoin. For example, XRP is up 1.53%, Bitcoin Cash (BCH) is up 3.81%, with Bitcoin SV (BSV) up nearly 3%. Litecoin (LTC), Binance Coin (BNB), EOS, and Tezos (XTZ), are all up, 2.64%, 2.87%, 1.49% and 0.46% respectively.
The Ethereum network is also seeing a lot of activity. Data Scientist and D5 co-founder Alex Svanevik has revealed that 58% of all ETH transactions are less than $20, with 80% less than $90.
These figures are low, compared to Svanevik’s study which shows that about 20% of all Bitcoin transactions are over $900. However, Ethereum’s figure shows that the network might be preferred for smaller transactions.
While no one can predict definitively, there’s a good chance other major altcoins and not just Ethereum will benefit from Bitcoin’s halving.