3 reasons Ethereum dropped much harder than Bitcoin in abrupt correction

Published on by Cryptoslate | Published on

Within 30 minutes, on November 18, the price of Ethereum dropped 7.7% as Bitcoin also recorded an abrupt 6% drop.

Three key reasons likely caused Ethereum to see a more volatile drop than Bitcoin.

In contrast, the volume of Ethereum is at $831 million, which is substantially lower than Bitcoin.

The sudden price drop of Ethereum from around $493 to $455 occurred right after Bitcoin abruptly fell from $18,476 to $17,214.

This shows that the initial drop of Bitcoin led ETH to drop, but due to its comparably lower volume, Ethereum saw a larger drop than BTC. Futures open interest for Ethereum is high.

There has been significant optimism surrounding Ethereum since early November, primarily due to ETH 2.0.

ETH 2.0 is a crucial network upgrade for Ethereum that massively expands its transaction capacity.

Following ETH 2.0, the Ethereum blockchain will be able to process a higher number of transactions per second.

At the time of press, Ethereum is ranked #2 by market cap and the ETH price is down 0.73% over the past 24 hours.

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