Ether (ETH) Breaks Out, Propelling 22.7% Rally for AAVE

• ETH’s price spiked and hit $2,400, leading to a resurgence in AAVE’s value.
• The correlation coefficient between ETH and AAVE was a solid 0.92.
• A positive divergence shown by the RSI suggests that AAVE could hit $130.

The concern about Ether’s (ETH) struggles to breakout has finally been put to rest as the coin jumped above $2,400 on December 27. Though the coin’s price has decreased from its initial hike, the rise also spread to tokens linked to Ethereum.

One of the cryptocurrencies helped by ETH’s surge is Aave (AAVE). AAVE is the native token for open-source lending and borrowing in the DeFi ecosystem. According to CoinMarketCap, AAVE’s price had increased to $123.57 by press time.

Like ETH, Like AAVE

The increase represents a 22.70% climb in the last 24 hours. Many market players following Ethereum’s movement since the Merge might not be bewildered by AAVE’s correlation with ETH.

This is because of the way the Ethereum Merge had affected Aave’s Block time and liquidity as explained here. Also, Coin Edition recently reported a surge in the accumulation of AAVE, which could have had an impact on the token’s price. 

Therefore, …

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