Ethereum up, everything else down. Why is that?

By ScreenTag | The Other Side | 27 Jul 2020

If you hold Ethereum-based (ERC20) tokens, you have felt it. While the value of your portfolio was expected to go up - or at least stay stable, if you don't hold any Ether - your portfolio is nose diving. Big time. Why is that, you may wonder.

The answer is exchange traded tokens. In the past very few days, Ethereum price went well over $300 (close to $330), or over 20% up. This was not funded though with fresh fiat money. It was funded with exchange traded tokens being converted to Ethereum. About 15% of all exchange traded tokens were traded against Ethereum during the weekend. People were selling any token they were holding - profitable positions were the first to go (this explains why Kyber was hit the most) - along with pretty much every other token. BAT, LINK, OXT, you name it. 

This also explains why this burst in Ethereum price was to be short-lived - in addition to Bitcoin surge, that was in part funded through conversion from Ethereum.

What is also notable, is the liquidity drop in the ETH-stablecoins pairs. It's profound that quite a few people are pulling off from Ethereum, to get on the Bitcoin bandwagon. This also explains the Ethereum price correction to close $315. It will probably go again below $300 or even lower, if Bitcoin keeps going higher for a few days.

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