⚠️ ETH just broke ATH and key resistance against BTC! (+178%) ⚠️Why does ETH keep pumping? I was wondering why ETH is pumping so hard without real retracements which you would normally expect. I also keep on seeing increasing volume for ETH... The question is; why is ETH doing so well?
ETH DOMINANCE
The answer you find in this chart, ETH just broke key resistance against the dollar AND bitcoin! This, ladies and gentlemen; is the mother of all signals; ETH will go parabolic from here; I have no doubt. I already posted about a 3K ETH in May but with current developments I think we can go much higher than that. Yes that sounds crazy but if you look how looooong it took for ETH to even get here in this bull market and how much institutions are and will be stacking it; you will understand that NOW there is a key shift in the crypto market. That is?
ALTCOINS ARE DEAD, LONG LIVE COINS
It is ETH taking over the position of BTC as the crypto hedge coin. Whereas you would always take profits or stops into BTC; the market will shift from BTC to ETH and not only that - no, there is a more severe reason! This is the BTC dominance. Believe me or not (and I love bitcoin, just look at my username) BTC will be dethroned as a major. The word "altcoin" will leave the crypto space and instead you will just buy coins according to what seems most interesting. This has multiple reasons:
- BTC has such a big marketcap it is unable to outperform most COINS (!) thats why investing in other coins than bitcoin is more risky but also brings a lot more potential gains.
- The end goal for BTC is to get to a marketcap of gold (around 8/9bn) and become low volatile digital asset that hedges against fiat
- Institutional investors will always be most attracted to use case, adoption and performance of utility coins such ETH, LINK and DOT (and many more) because they can monitor progress (of the blockchain) as if it was a stock and a company.
- Institutional investors will from now on becomes the main driver of the market (over retail investors); what they buy will go up and retail will follow and vice versa...
THE FUTURE OF CRYPTO
- BTC will become one of the coins, no longer THE coin, therefore the word "ALT" coin should be and will be ditched soon.
- ETH will become will replace BTC as a hedge against smaller coins because as ETH has such great adoption and will start a deflationary model; it will be most rewarding low risk crypto asset.
- BTC will become more of a low risk asset like gold; with diminishing returns and diminishing risks; exactly what it needs to be.
- Future bull runs will be dominated by blockchains with the most adoption and performance, the time of meme coins is soon over.
ETH VS BTC
As for the ETH/BTC pair we can be very short and simple; for the next months but most likely years; Ethereum will outperform Bitcoin. Only if ETH will be outperformed by a rival blockchain; we could see a shift in this trend. For now there is zero reason to believe that ETH will not rule the crypto and defi space; it is literally what is made for and it has most of the market share. In my opinion the ETH price has a long way to reach its top and with this crucial signal flashing; I seriously have no clue of where this will stop but let me do a wild assumption; 10K is coming this year but maybe more, who knows?
What I do know is that this breakout is history in the making for Bitcoin and the crypto market as a whole.
