Bitcoin retests $21K as it takes back ground from Ethereum ahead of The Merge
Ethereum loses 0.8 BTC as Bitcoin leads the rally going into the last weekend before The Merge
Bitcoin is up 10.3% on the day following an overnight rally taking it back over $20,000 and testing the $21,000 resistance.
Interestingly, the ETH-BTC chart shows that Ethereum gave up its recent gains against Bitcoin — falling 4% on the day. Ethereum rose 4.5% against the Dollar overnight but fell by a similar amount against Bitcoin. Ethereum had reached 0.84 BTC but is now trading at 0.81, still 5% up since the start of September.
Following the issues related to the ChainID for the ETHPoW chain, along with some validators on the Beacon Chain being unable to update, it is possible Bitcoin’s rally is driven by fear among ETH holders. The price movement in ETH-BTC suggests that holders are selling ETH for BTC.