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Bitcoin [BTC] was in the limelight for quite some time due to anticipation around the ETF. Due to this, Ethereum [ETH] got left behind and the correlation between the two coins witnessed a decline.

According to Kaikos data, the BTC to ETH correlation has fallen below its historical average of 0.71 for the first time since 2021. In recent months, the two cryptocurrencies have demonstrated divergent price movements, with BTC benefiting from ETF-related hype and speculation, while ETH underwent a comparatively subdued rally.

Analyzing BTCs performance leading up to its ETF approval offers insights into ETHs potential trajectory. Over the past 365 days, BTC has witnessed a robust 100% increase in returns, outpacing ETHs more modest 60% returns.

However, a shift occurred on the day of BTCs approval, with BTC experiencing a decline and ETH rallying, fueled by the growing anticipation that ETH could be the next in line for such approval.

In the past week, ETH spot volume on Centralized Exchanges (CEXs) surged to its highest level since the FTX collapse.

Notably, there was a substantial disparity in volume between ETH and altcoins, favoring ETH and representing the most significant gap since March 2023.

This surge in volume suggests heightened market activity and interest in ETH, potentially indicative of a changing dynamic within the cryptocurrency landscape.

However, some factors may help generate interest in ETH in the next few months.

Apart from the potential approval of the Ethereum ETF, the new developments on the Ethereum network may also provide some hope to ETH holders.

ReadEthereums [ETH] Price Prediction2024-25

Recently, the Dencun upgrade was deployed on the Goerli testnet, further cementing the fact that the development teams progress in terms of development.

Moreover, in the recent ACD call, discussions around deploying the Dencun upgrade on other testnets also ensued.

Read more from the original source:

Ethereum decouples from BTC Heres what it means for ETHs future - AMBCrypto News