Why is Ethereum price action still influenced by BTC even after decoupling?

[Lucius]

Those people who expect ETH to chase BTC must be ETH holders. 
~snip~

If you invest in something, then I guess you believe that you will achieve good results that way - and as I already wrote, many will decide to invest in ETH rather than in BTC for the simple reason that 1 ETH costs $3000+, and 1 BTC costs $60 000+. Therefore, many speculate that if ETH jumps at least x10 one day, it can be a much bigger profit than investing in BTC.

Yesterday, ETH almost reached $4k again. It was about $3.9k. It is likely not so difficult to return to the ATH in 2021. However, it is true that Bitcoin can increase faster, it already reached a new ATH before the halving. Sure, looking at this trend, Bitcoin seems like to always ahead of Ethereum.

This was expected since the ETH ETF (spot) was approved in the US and many took the opportunity to try to cash in on the news. Of course, it will be necessary to wait for a while to see how much investor interest will be, but regardless of the fact that this is good news for all those who have ETH or are just going to invest in it, on the other hand it is bad for BTC in the sense that part of the money will probably go in the other direction.

[koang]

Bitcoin remains the King, Ethereum still has a lot to prove if it wants to take the crown and the decoupling was always a dream, but It’s never happening.
ETH is losing some ground to SOL, and they in time will lose ground to newcomers and every other judgment by people is just a statement about themselves.

Conclusion: Altcoins were created to take your Bitcoin. End of story.

[philipma1957]

My thought after decoupling was that ETH will fly solo impacted by it's utility and the general market sentiment largely influence by BTC.
The was expected to be a game changer but i think we seeing the opposite or perhaps there some info i am mising?

Why do you think that they are decoupled?

[taufik123]

Bitcoin remains the King, Ethereum still has a lot to prove if it wants to take the crown and the decoupling was always a dream, but It’s never happening.
ETH is losing some ground to SOL, and they in time will lose ground to newcomers and every other judgment by people is just a statement about themselves.

do you believe in your statement, is it true that ETH is inferior to SOL at the moment?
Even though ETH is the top altcoin that will not be matched by other altcoins.

I understand how hype Sol Ecosystem has had in recent months because of memecoin, but look now at how that trend ended so badly due to severe network congestion.

ETH has never even experienced congestion as bad as SOL and even remains the top altcoin with the network always being the mecca of all altcoins and new networks today.

And about bitcoin there will be no replacement, Bitcoin remains King in the crypto ecosystem and remains the unparalleled king.

[koang]

Bitcoin remains the King, Ethereum still has a lot to prove if it wants to take the crown and the decoupling was always a dream, but It’s never happening.
ETH is losing some ground to SOL, and they in time will lose ground to newcomers and every other judgment by people is just a statement about themselves.

do you believe in your statement, is it true that ETH is inferior to SOL at the moment?
Even though ETH is the top altcoin that will not be matched by other altcoins.

Depending on what you measure,  when you include L2, Solana usually remains behind Ethereum.
But Solana wins in some areas as an L1 to L1 comparison.
And if you're asking about winning or losing in market capitalization and trends, right now, yes, Eth is winning
However, the claim that Ethereum will not be matched by other altcoins is an overly hasty and inaccurate assertion.
A single point in time tells us nothing.

[Zed0X]

The only time I see BTC not influencing altcoins is when it's the only crypto that's outlawed. Only then can ETH take over as the new King. Chances of that happening is probably 1% or less.

Bitcoin remains the King, Ethereum still has a lot to prove if it wants to take the crown and the decoupling was always a dream, but It’s never happening.
ETH is losing some ground to SOL, and they in time will lose ground to newcomers and every other judgment by people is just a statement about themselves.

do you believe in your statement, is it true that ETH is inferior to SOL at the moment?
Even though ETH is the top altcoin that will not be matched by other altcoins.

Depending on what you measure,  when you include L2, Solana usually remains behind Ethereum.
But Solana wins in some areas as an L1 to L1 comparison.
And if you're asking about winning or losing in market capitalization and trends, right now, yes, Eth is winning
However, the claim that Ethereum will not be matched by other altcoins is an overly hasty and inaccurate assertion.
A single point in time tells us nothing.

I don't mean to join you in your Ethereum vs. Solana argument but I'm curious about the congestion that was mentioned. Was it really that bad that it cannot be compared to the usual Ethereum network traffic? Or maybe it's the outage that happened three months ago?

[taufik123]

I don't mean to join you in your Ethereum vs. Solana argument but I'm curious about the congestion that was mentioned. Was it really that bad that it cannot be compared to the usual Ethereum network traffic? Or maybe it's the outage that happened three months ago?

It's funny to hear about power outages for the SOLANA network, as if they don't have strong power backup.
Solana's network shutdown in February lasted about 5 hours and it was a bad reputation for Solana.

And when Memecoin hype on the Solana network instead caused a long network congestion, this was very bad and made several projects fail to launch and According to Dune Analytics, about 70% of Solana's non-voting transactions fail.

Network congestion is largely due to an influx of spam transactions, with bots attempting to prioritize their activities over those of regular users.

This problem was exacerbated by a dramatic increase in transactions associated with the newly released memecoin, creating tremendous demand for the network's block space and resulting in obstruction of access for many users.



https://dune.com/scarn_eth/solana-tx-fail-rate

[yhiaali3]

It's funny to hear about power outages for the SOLANA network, as if they don't have strong power backup.
Solana's network shutdown in February lasted about 5 hours and it was a bad reputation for Solana.

According to an article I read on Cointelegraph: “This is not the first time the Solana blockchain has faced a network outage or disruption in block production. The network has suffered multiple downtimes over the past few years, and the most recent outage (which occurred on February 6) will be the eleventh time in the last two years.

This terrible!! How can a network with all these problems and outages outperform Ethereum, it is impossible.

[JoyMarsha]

As the crypto market is concerned, no coin can skyrocket solo without bitcoin first skyrocketing before they do. Bitcoin is just like a mirror of reflection of how the whole altcoins react to price.

Thinking of ethereum to be a separate entity from bitcoin price movement can't happen so long as bitcoin is the king of all crypto, and no other altcoins can challenge that or takes away the known fact.

[taufik123]

According to an article I read on Cointelegraph: “This is not the first time the Solana blockchain has faced a network outage or disruption in block production. The network has suffered multiple downtimes over the past few years, and the most recent outage (which occurred on February 6) will be the eleventh time in the last two years.

This terrible!! How can a network with all these problems and outages outperform Ethereum, it is impossible.

It's quite terrible when network downtime always occurs on the SOLANA network, which has only been hyped for a few months,
after its rise from the slump due to the effects of FTX CEO Fraud.

I admit that at the beginning SOLANA was good and could create a new trend of memecoin that was extraordinary after Ethereum, but when I learned of so many problems in the SOLANA network, that became a big obstacle and made all investors now move to other networks.

[bounceback]

According to an article I read on Cointelegraph: “This is not the first time the Solana blockchain has faced a network outage or disruption in block production. The network has suffered multiple downtimes over the past few years, and the most recent outage (which occurred on February 6) will be the eleventh time in the last two years.

This terrible!! How can a network with all these problems and outages outperform Ethereum, it is impossible.

Solana network disruption last two years its too long taken more than three days and stuck for sending all transaction based on Solana network, I think its bad with usually disruption some network taking few hours only but Solana needed more than several days before their network back normally.
All network get distinguisted from Binance Smart Chain until Solana but for Ethreuem has problem and can solve it when increasing fees of transaction.

[yhiaali3]

I admit that at the beginning SOLANA was good and could create a new trend of memecoin that was extraordinary after Ethereum, but when I learned of so many problems in the SOLANA network, that became a big obstacle and made all investors now move to other networks.

Yes, Solana was very good and I expected it to grow significantly in the future. The occurrence of network problems such as these continuous outages will harm the network a lot, so developers must do their best to fix these problems if they want to compete with other networks.

Despite all this, there was talk two days ago in the American economic network CNBC about the possibility of issuing ETFs for SOL after the approval of the Ethereum ETF. Although this is just media talk, it indicates that the Solana network has a good reputation, and this could give great impetus to the SOL coin and stimulate further development For the network.

[SmartGold01]

No matter what changes occur in Ethereum, it is still referred to as Alts. This means that if you believe in Bitcoin dominance, altcoins will follow. Aside from that, I do not believe Ethereum truly decouples from Bitcoin, as we can see from the Ethereum chart since 2022, when the price of Bitcoin rises, Ethereum follows. So, I believe no currency is exempted from it.

Yeah you are correct, any coin outside bitcoin is altcoin and will always act according to bitcoin price manipulation and more especially bitcoin is known to be the market influencer. Meaning whatever that happen to bitcoin easily affects the market and automatically every other altcoin got affected, moreover the market are easily controlled by news which I know is the main thing that moves the market than any other thing. Although most times the whales could possibly dump over to put the little midium trader on a suspen or to emptied their holding to other stable coin.

[vegasus]

My thought after decoupling was that ETH will fly solo impacted by it's utility and the general market sentiment largely influence by BTC.
The was expected to be a game changer but i think we seeing the opposite or perhaps there some info i am mising?

One of the reasons why Ethereum has always followed Bitcoin's performance so far is because of market sentiment. Historically, the price of Ethereum will also follow the price movements of Bitcoin, for a long time, because they have a strong correlation in the market and also the sentiment of its investors. Let's just analyze it, every time Bitcoin goes up, ETH will also follow, and so is the case, when Bitcoin suddenly drops drastically, then so will Ethereum. Both of them are cryptocurrencies that are quite close and full of investor sentiment in the market, which has a strong correlation with each other.

Read this:
https://www.fool.com/investing/2024/05/25/will-ethereum-soarsoar-116-in-2024/

[Captain Corporate]

Thats not the point, everyone thinks that there is an answer to this question and trying to answer it but the reality is that the question is wrong, so you can't ever give a correct answer to a wrong question. There is no decoupling, bitcoin and ethereum (and everything else) is still connected to each other and I believe that it will be for a long long time. This means that we are going to see them move together as well, that won't really change anything, we should just let it be and consider this as quite a possible situation. I understand it may not feel that way at times, but it is very much connected like I mentioned.