Does Ethereum depend on Bitcoin? According to the correlation analysis, BTC and ETH have a very strong positive relationship. The correlation coefficient of their prices is 0.83, which was estimated based on the last 100-days' price fluctuations of both cryptocurrencies.
This coefficient may vary from -1 to 1, where -1 is the strongest negative correlation, 0 is no correlation at all and 1 is the strongest positive correlation.
The negative coefficient shows that the prices of the cryptocurrencies are moving in the reversed trend while the positive coefficient shows that the prices are going in the same trend. For example, if Bitcoin and Ethereum connection is positively strong, it means that when BTC is rising ETH will rise as well. The negative strong relation will point that when BTC is growing ETH value will be in opposite lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Ethereum. If we take all the factors affecting the price of ETH as 100%, then the share of BTC price among these factors will be 68.89%. The other part which is 31.11% covers all the other circumstances, such as media, events or politics.