Ethereum is at a unique junction. There are several major updates pending over the next few months that will make it a deflationary asset, increase transaction rates, and decrease costs. Together, these updates will greatly improve the utility of Ethereum.
Professional traders are no idiots. They see that these upgrades will catalyze demand in the face of slowly diminishing supply. What happens to price? It will go up.
This is not the case for Bitcoin. Costs are high, supply is still going up, and network speed is limited. People prefer to use eth or alt coins for network transactions.
The so called eth killers won’t really have a big use case once Eth2 goes live. Why? Just pure market cap alone. And existing dapps and integration into major systems like PayPal, various exchanges, etc. Everyone carries Ethereum.
Now that the roadmap has been solidified, the major traders are seeing that Ethereum is at a discount. Compare Bitcoin and Ethereum side by side over the past two weeks. Bitcoin plummets. Either simultaneously or shortly after, Ethereum gets pumped. Ethereum following or exceeding drops in Bitcoin just isn’t happening anymore.
Interestingly, the alt coins are starting to follow trends in Ethereum too. They aren’t reacting as much to changes in Bitcoin.
Folks, we had a market correction of about 25% compared to bitcoins ATH. But what about compared to Ethereum? Bitcoin still hovers around 50k. Ethereum is approaching its ATH now.
In my opinion, this is not a bear market. It is an extraordinary sea change in the utility of a specific coin. Bitcoin may have the greatest market share right now, but imagine what will happen if this flippening continues toward Ethereum. What could happen to Ethereum’s price point if it takes over bitcoins place?
To be clear, I am not an expert in any of these things. These are just my observations. I am not giving anyone financial advice nor making any recommendations. Do your own research and make up your own mind.