Ethereum Could Have Topped at $4,372
The analysis by Santiment goes on to point out that Ethereum has lost over 50% of its gains since setting an all-time high of $4,372 on May 12th.
To note is that Ethereum went through a similar fate in January 2018 after setting the aforementioned all-time high of that bull season of $1,440. What happened back then, is that Ethereum printed a double top pattern before dipping by 47.5% to $755. The chart below further highlights the price action back in January 2018.
Ethereum’s Correlation to Bitcoin Increases
The probability of Ethereum having topped out at $4,372 has also increased based on the fact that ETH’s correlation to Bitcoin is once again rising as seen in the following chart courtesy of Coinmetrics.
An increased correlation between Ethereum and Bitcoin means that where BTC goes, ETH will follow. This relationship between the two digital assets has been best exemplified through the volatility of the last week when Bitcoin dropped from $41k to $30k on Wednesday and from $41k to $33,488 earlier today. During the same time period, Ethereum dropped from $3,400 to $1,888 on Wednesday and from $2,990 t0 2,100 earlier today.
Therefore, if Bitcoin has entered a bear market, Ethereum will also enter a bear market and $4,372 will definitely be a top.
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