ETH Increased Volatility Relative To Bitcoin

The last half of 2019 was a tough time for Ethereum. Its value depreciated steadily, although with a handful of positive price movements, none strong enough to shake the overall downtrend that haunted the digital currency to the end of the year.

It’s now 2020 and so far, there is optimism over ETH price movements. Over the past six weeks, Ethereum enthusiasts have witnessed an 84% rise.

Currently, world #2 is valued at $220 and is reportedly testing importance resistance. Volatility is the only conflict Ethereum might face.

Increased Volatility

Skew, crypto derivatives and data analytics firm has reported that traders should expect increased volatility near those experienced by bitcoin prices.

On February 10, Ethereum’s volatility experienced a 6 month consecutive high in respect to bitcoin’s. The flagship cryptocurrency only recently went past the $10,000 mark. The milestone has been interpreted by many crypto circles as a sign of an imminent bull run. While the volatility could assist Ethereum to rise higher in the charts higher, it could also spell a downtrend.

Bitcoin has experienced a few price corrections in the last 24 hours since touching $10,100 on Sunday. It is currently valued at $9,800. The news may seem disappointing, although it’s not abnormal. It is expected of the market with such a greater bearish sentiment to have a sell-off at $10k.

The flagship currency itself has expressed confidence and stability at $9.6k which shows that sellers have pulled out and left HODlers.

Possible Downtrend?

Ethereum’s 360-day correlation with BTC has been on the decline since the beginning of 2019. Therefore, increased volatility relative to BTC could possibly mean a downward movement in the future.

The daily Ethereum chart vs the USD indicates that a drop down to $144 is possible at this volatility level. On the other hand, ETH has been dropping in terms of BTC value. It’s an indication that Ethereum might rebel against bitcoin’s potential upward movement in the short to medium term.

smart contracts

Smart Contracts Improve Data Quality While Limit Its Availability-Study

Meanwhile, a study has found that smart contracts improve data quality while minimizing its availability. The study by Gartner Inc. finds that organizations using blockchain smart contracts will have an improved data quality of 50% with reduced availability of 30%. The decreased data availability could negatively affect participants on the blockchain.

The study also notes that the terms and conditions of the smart contract and governance framework for blockchain participation will dictate the availability of data from a smart contract.

The adoption of smart contracts enhances speed, transparency, and granularity, thus making data on the chain more reliable, accurate and trustworthy due to its continuous verification.