Gemini crypto exchange CEO and co-founder Tyler Winklevoss expressed his view on the state of the market yesterday, stating that the Ethereum bull run is different this time. At the time, the leading altcoin traded at around $590.
Truth be told, Ethereum reached a new yearly high that was not seen in years. But is the bull run any different from 2017? And beyond that, will it ever catch up with Bitcoin?
Without any further details, the Winklevoss brother shared two tweets yesterday regarding both Bitcoin and Ethereum. In these tweets, the Gemini CEO called 2020’s bull run different from what we have seen before. Indeed, the market is shaping up far differently than it had before, but is that bullish?
From the perspective of Ethereum, investors had a great year. It reacted far better compared to 2019 and even pushed the market before Bitcoin did at certain times. As the DeFi market began to surge and increase ten times in size over the course of the summer, it supported Ethereum’s growth. With everything in mind, 2020 is similar in certain aspects to 2017. We can view DeFi as another version of the ICO craze, which propelled prices at the time.
During the major crash in all financial markets in March, Ethereum returned to its 2018 December lows. Trading at around $90, the leading altcoin hit a point so low that all other ERC-20 tokens became almost worthless. But now, we have a remarkable situation. At a yearly high of $620, the cryptocurrency outmatched all expectations. However, have we reached the top for this year? According to one Crypto Twitter investor, the party may be over.
Ethereum crashing to $250?
Famous crypto persona Tradermayne revealed a chart on November 25 which showcased an extremely bearish situation for Ethereum. According to him, the cryptocurrency hit both a major supply point and a Fibonacci line. Such confluence led him to believe that Ethereum reached a top for the time being.
As of this morning, the crypto market already began to catastrophically drop after Bitcoin made a double top. According to Tradermayne’s chart, we can see a potential ETH retrace down to $250. His timeline estimates such a drop to occur by Q1 2021. Following a drop, the trader expects the leading altcoin to quickly bounce and head for new highs. Targeting $810, he believes that the market will reach a yearly high by September 2021.
Since this morning, we have seen a heightened whale wallet activity. According to one post by Whale Alert, an individual transferred $6 million worth of ETH to his personal wallet. Since he transferred the assets from an exchange to a wallet, it is possible that the investor believes that the crypto asset may bounce. After all, Ethereum dropped down to $490 today and most investors believe that the worst has passed.
Why is this Ethereum bull run different?
Ethereum’s next bull run may be more bullish than it has ever been. In 2017, the project’s blockchain network was terribly slow and did not manage to support demand. Over the past few years, developers have consistently worked on delivering new network upgrades and updates.
In December, developers plan to launch Ethereum 2.0. This Proof-of-Stake blockchain network will massively overhaul the entire network. By finally bringing full scalability and eliminating large fees, Ethereum has the potential to reach a much higher value than it ever did before. As such, ETH 2.0 is a game-changer and may completely change the project’s price action. On that account, it is possible to even expect Ethereum to outpace Bitcoin in the next bull run. But first, we’ll have to recover from the recent crash.