While the whole crypto market was doing its thing and moved according to Bitcoin’s will, Ethereum showed some resilience.
The last month was the moment when the market formed an interesting trend.
The correlation between all cryptocurrencies is apparent, but the biggest trendsetter is Bitcoin. Its price movements are often exaggerated and sow panic among retail traders.
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The volatility frequently spills over to other tokens and creates a situation where the entire market is moving together, creating the same technical analysis shapes on the price chart.
Ethereum is an interesting outlier
It is true that some tokens may move away from the general trend in the market following some good news stories or other developments.
For example, the GMX token gained about 20% since the moment FTX collapsed.
Decentralized exchanges immediately started gaining momentum due to the distrust toward centralized entities like CEX platforms and intermediary funds.
Ethereum was moving alongside the market, but its surges and dips were less volatile, indicating that investors have a firm grasp on the value of the token and its current position in the industry.
While it failed to impress millions by switching to the PoS model, it still has some trump cards to play.
The merge is not over yet, with significant funds still locked in staked assets at the Beacon chain. They will be released in March 2023.
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Another important thing is that Ethereum is understood by tech-savvy investors as the underlying network for many DeFi platforms that managed to retain their value during the crypto winter.
Whenever something good is announced or happens with layer-1 and layer-2 platforms, Ethereum receives a small bump.
The flippening may happen under a different angle
The original idea that Ethereum would become the dominant coin in the market was based on the assumption that it would overtake Bitcoin in price and surge by leaving it to bite the dust.
However, the current trend indicates that a different scenario may happen: Bitcoin may start losing value allowing Ethereum to shoot past it.
We have to see what will change in the crypto industry by the end of the second quarter of 2023.