I used to think that, as the value of bitcoin appreciates, so also should the value of Ethereum. But it seems the reverse is the case.
My question is, Why is it so? I need your opinions, for clarity sack and a better understanding that would really stand as a guide.
Trying to understand the correlation between altcoins and Bitcoin is tricky. It's a fickle relationship. Usually when Bitcoin rises fast (like now), altcoins drop in value as people exit altcoin markets to hold BTC. When coins are in an accumulation phase, they will often hold their value against USD but fall against BTC. We're seeing a mass exit in alt/BTC markets as people chase Bitcoin's rally (with a few exceptions). This can even spill over into dumping alt/fiat markets (like ETHUSD) because the Bitcoin fomo is so strong.
Ethereum having some issues with it is network right now. That is it main problem.
I doubt it has much to do with Crypto Kitties. There is significant network congestion and rising transaction fees (much like Bitcoin), but it's the negative correlation to Bitcoin that's killing its price. The fear of missing out on BTC's gains is causing most coins to bleed out. My portfolio is less than 20% alts, and I've bled buckets today.....