The crypto market witnessed a sudden sell-off on Wednesday, which plunged the leading assets, Bitcoin and Ethereum price, to $55600 and $2300 lows, respectively. However, both the coins rebounded immediately to indicate their correlation and active demand pressure at the bottom. Amid a week-long consolidation, the BTC price has rejected a major downfall below the $60000 level, and the ETH price showed similar resilience below $2500. Is a reversal imminent in September?
Ethereum Price Rebounds Amid New DEX and Ripple’s Smart Contract Expansion
The Ethereum price has avoided a prolonged correction below $2500 for over a week, indicating a weak conviction from market sellers. The stalled bearish momentum followed the recent launch of a new decentralized exchange, Ethervista, and Ripple’s announcement to add an Ethereum smart contract on XRP Ledger.
The Ethervista DEX offers customized token launch parameters and attracts long-term liquidity providers through bonding curves and revenue sharing. The 5-day lock-in period on initial LPs assures smooth operation in the early crucial phase, as most rug-pull events occur within the first 2-3 days.
Moreover, the digital payment company Ripple is set to expand programmability on the XRP Ledger by introducing native smart contract capabilities and the XRPL EVM Sidechain. By leveraging XRP Ledger’s low transaction costs and high speed, Ethereum developers can potentially scale their applications more efficiently while maintaining access to Ethereum’s vast dApp ecosystem.
These developments could have a long-term effect on ETH prices, driving natural demand among market participants.
BTC-ETH Correlation Points to Ethereum Surge If Bitcoin Targets $100K
The Ethereum price prediction shows a notable correction from $2820 to $2476— a 12.2 decrease within two weeks. If the prevailing bearish momentum persists, the ETH price could plunge 20% to retest a long-coming support trendline at $2000.
Each reversal from this dynamic support has propelled a 100-160% rally for Ether, indicating strong accumulation points for buyers.
ETH/USD – 1d Chart
The pioneer cryptocurrency, Bitcoin, shows a bullish continuation pattern called ‘Flag’ in daily time frames. This chart setup drives a temporary consolidation between two downsloping trendlines for buyers to recuperate the bullish momentum.
By the press time, the BTC price trades at $58429, while the market cap is $1.152 Trillion. A potential breakout from the pattern overhead trendline at $68000 could accelerate the buying pressure signal uptrend continues.
The Bitcoin price prediction hints at a post-breakout rally to $84000, followed by $100000.
BTC/USD – 1d Chart
According to the Coin Metric data, the BTC-ETH correlation coefficient hovers steadily around 0.80. A surge in this metric will indicate that the Bitcoin price movement
BTC-ETH Correction | CoinMetric
strongly influences the Ethereum price.
Thus, if the BTC completed the Flag pattern to hit $100000, the ETH price could rally to nearly double and chase $4500 to $5000 high.
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