ETH made a strong attack this morning, after breaking through $1400, it continued to rise to $1474 with a daily increase of nearly 10%, far exceeding BTC (2.1%).At the same time, the assets of DEFI rose generally, including 1inch, nest and badger all increased by more than 15%.
According to market data, ETH began to build up its strength at 4 am this morning. The price of ETH rose to 1390 dollars from 1300 dollars, ready to launch an impact on 1400 dollars.
At about 8:00pm, the token rose rapidly for a short time, successfully stood at $1400, and then continued to rise to $1474, which was stronger than the general market.
In fact, since BTC dived sharply on January 11th and led the decline of cryptocurrency market, ETH has gone out of a completely opposite situation with the market.The cocoa market showed that BTC has been in a downward trend since the fall of more than $8000 on the 11th. After several tests of $40000 failed, it turned back to the front line of $30000, and the price fell below the 30 day average.
On the contrary, ETH, after falling to $1000 on the 11th, began to recover its lost ground. Not only did the price rise steadily to above the key support level of $1200, but also tried to break through $1400 three times.
The recent trend of BTC and ETH reflects that the price correlation of these two cryptocurrencies has been declining. According to coinmetrics data, the correlation between BTC and ETH is 0.68, equivalent to the level since February 2018.
According to a report released in November last year by chainalysis, a blockchain analysis company, the price correlation between BTC and ETH may not be as strong as in the past.According to the company's report, BTC and ETH prices are driven by different use cases and different markets. Although both prices are rising now, investors should not expect the correlation to be as strong as it used to be.
"From April 2020, with the price rising, the capital flow of ETH from the French currency exchange to the crypto exchange is balanced, while the fund flow from ETH to DFI is more than that to the centralized exchange. Bitcoin, to a greater extent, is driven into crypto exchanges by French currency, while the trading between bitcoin and counterfeit currency is less intense, which means that investors prefer to buy bitcoin with French currencies such as US dollar, euro and British pound, rather than smaller counterfeit currency. "
As the price of ETH continues to warm up, standing on the line of $1200, the market's confidence in the cryptocurrency has increased. David grider, a strategist at fundstrat global advisors LLC, predicted on the 20th of this month that the token price could soar seven times to $10500 after ETH broke through $14000.
ETH quoted $1436, up 8.51% in 24 hours.