Some traders are predicting a parabolic rally based on ether's (ETH) recent price action to local all-time highs. If the Ethereum currency can surpass the $600 level, there is comparatively very little resistance to the all-time all-time high just above $1400.
Should these predictions be true, ether is set to outperform bitcoin over the course of this bull run. Should that happen, we can expect a very different crypto landscape than the one with bitcoin in the lead:
1. Smaller defi projects will get a boost. Top projects like Chainlink, Tezos, Polkadot and THETA are expected to do well whether bitcoin or ether leads. However, an ETH blastoff means that more people find out about defi. The rainfall will most certainly hit smaller stuff like XIOT, Doki Doki and newer stuff like Team.finance and Pickle.
2. The bull run will be more sustained. The Ethereum network has many positive happenings in its roadmap that are set to occur in Q1 2021. Most analysts agree that none of these things have been factored into the price — Ethereum 2.0 staking, the Beacon Chain rollout, lowered supply on the open market, etc. If ether takes the lead, investors can expect a marketing and PR blitz that will help to sustain the price and possibly altcoin season.
3. Ghost chains will boost, but the difference will become apparent. I'm no Ethereum maximalist by any stretch. But the market seems to have spoken for the time being, and it's singing "we want ether/your chain's weaker/we want ETH/we want ETH/BSC/go to sleep." Once investors see that stuff like IOST isn't pumping, they will quickly lose interest and move funds out. This may spell the death knell for a few chains.
4. Projects with definable and verifiable use cases will flourish. Profits in ETH will correspond with an education in ETH. Soon, people will understand that the purpose of Ethereum is fundamentally different from BTC. Once they realize the connection between the currency and the use case, they will begin looking for projects with use cases.
5. The bull run will be more horizontal than vertical. We're not going to see a 1000X like in 2017. What we will see is more projects getting some shine because the speculative expendable money will be more spread out.
It's very possible that bitcoin is just taking a break and it's going to take the baton back from ether very soon. We'll see very shortly, because crypto is making moves quickly this holiday season. Cover your backside, don't take too much leverage, and save some gains for your nephew's Christmas present before your dumb ass gives it back to the market!
