A correction can be scary, and today’s Ethereum price crash was definitely not an exception, but it also yields interesting insights. One of them is how deep a correction (crash) goes. The other one is what the relative strength is.
Let’s look at both, one by one.
The first point, how deep a correction goes, is important from the perspective that bulls want to see a higher dip compared to the previous high. So, in other words, if Ethereum dipped at $260 today, it should be higher than the previous top of a couple of weeks ago. That clearly is the case, so that is good, at least up until now.
The second point, relative strength, indicates which of the cryptocurrencies stands stronger than its peers. Stated differently, which cryptocurrency goes down most, and which least. From that perspective, it is helpful to look at the Bitcoin to Ethereum price ratio, see chart below. The ratio indicates that Ethereum has the same ratio as Bitcoin over the last couple of days. So Ethereum did not correct stronger than Bitcoin did today.
This ratio does not spell a bearish outcome, over the long term, for Ethereum.