This article is available in Spanish.
As the crypto market prepares to close out the year, the Ethereum price shows strength against Bitcoin (BTC) as it targets a mid-range reversal. A breakout above a critical resistance level could signal a possible shift in price action, paving the way for Ethereum’s dominance and a potential rally in the first quarter of 2025.
Ethereum Price Poised for Breakout Against Bitcoin
A crypto analyst, known as ‘Daan Crypto Trades’, shared a price chart representing the ETH/BTC trading pair and providing detailed analysis of the probability of a reversal and its impact on the strength of the altcoin market. According to the analyst’s X post (formerly Twitter), Ethereum price is trying to make a higher low near 0.786 Fibonacci retracement level at 0.0337, signaling the start of a potential trend reversal against Bitcoin.
Related reading
The Fibonacci level of 0.786 seems to act as a strong support zone, indicating a possible shift from bearish to bullish. Daan also revealed that the BTC level of 0.04 has emerged as one main resistance level That needs to be broken before any more bullish momentum can build.
The analyst emphasized that a breakout above the 0.04 BTC level would confirm the trend reversal in the middle of the high time frame. If this happens it can be significant weaken Bitcoin’s dominance and indicate greater strength of altcoins, especially Ethereum.
In the context of the ETH/BTC analysis, a reversal of the mid-high time frame suggests that Ethereum could trigger a bullish trend the coming weeks to months. This time frame is also used to assess broader trends rather than short-term price movements.
Looking ahead, Daan revealed that the ETH/BTC trading pair has historically performed well during the first quarter of the year, in line with seasonal trends that typically favor altcoins. If this historical pattern holds, the analyst believes that a breakout above the 0.04 Bitcoin level could lead to a significant rally for Ethereum and the altcoin market.
Moreover, this is projected The rally is expected to take place in the first quarter of 2025resulting in a significant increase in the BTC level from 0.040 to the 0.046 level as indicated in the analyst chart.
Implications for Altcoin Season
If Ethereum breaks through the 0.04 BTC level, it could mark the start of a bullish phase not only for the second-largest cryptocurrency, but also for the broader sector. altcoin market. Historically, Ethereum’s market performance has acted as a benchmark for the strength of altcoins.
Related reading
If Bitcoin’s dominance wanes, it could trigger a wave of investor interest and demand for altcoins. Currently, Bitcoin’s dominance to stand still relatively high at 57.8% despite price drops and market volatility.
For the altcoin season in full swingthe market’s attention will have to shift from Bitcoin to alternative cryptocurrencies. A crypto analyst identified as the ‘Crypto Rover’ revealed in a recent post that Bitcoin’s dominance is undergoing a bearish retest and could potentially fall to 42%.
If this happens, the analyst claims it would be incredibly bullish for altcoins, potentially marking the start of the anticipated altcoin season.
Featured image created with Dall.E, chart from Tradingview.com
