As the crypto market prepares for the end of the year, Ethereum price It shows strength against Bitcoin (BTC) as it aims for a medium-term reversal. A break above the critical resistance level could indicate a possible reversal in price, paving the way for Ethereum dominance and a potential rally in the first quarter of 2025.
Ethereum price is poised for a breakout against Bitcoin
A cryptocurrency analyst, known as Daan Crypto Trades, has been shared A price chart showing the ETH/BTC trading pair and providing a detailed analysis of it Possibility of return And its impact on the strength of the altcoin market. According to analyst X's (ex-Twitter) post, Ethereum price is trying to form a low near 0.786. Fibonacci retracement level At 0.0337, it represents the start of a potential reversal against Bitcoin.
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The 0.786 Fibonacci level appears to be acting as a strong support zone, indicating a potential bearish to bullish reversal. Daan also revealed that the 0.04 BTC level appeared as one Key resistance level which must be broken for further upside to occur.
This analyst emphasized that a failure above Level 0.04 BTC Confirms the reversal of the average time frame trend. If this happens, it can significantly Weakening Bitcoin dominance And it shows the increasing power of altcoins, especially Ethereum.
In the context of ETH/BTC analysis, a medium-to-high timeframe reversal suggests that Ethereum could make an uptrend Over the next few weeks to months, this time frame is also used to assess broader trends rather than short-term price movements.
Moving forward, Daan revealed that historically, the ETH/BTC trading pair has performed well in the first quarter of the year, aligning with seasonal trends that typically favor altcoins. If this historical pattern holds, the analyst believes that a break above the 0.04 Bitcoin level could lead to a significant rally for Ethereum and the altcoin market.
Moreover, this is predicted A rally is expected to occur in the first quarter of 2025leading to a significant increase from the 0.040 BTC level to the 0.046 mark, as shown on the analyst chart.
Implications in the altcoin season
If Ethereum breaks out of the 0.04 Bitcoin level, it could be the start of an uptrend not only for the second largest cryptocurrency, but for the whole of it. Altcoin market. Historically, Ethereum's market performance has served as a benchmark for altcoin strength.
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If Bitcoin's dominance declines, it could increase investor interest and demand for altcoins. Currently, Bitcoin dominates standing At 57.8 percent, it's still relatively high despite price cuts and market volatility.
for The altcoin season is in full swingthe market's attention should be diverted from Bitcoin to alternative digital currencies. A cryptocurrency analyst, known as a “Crypto Rover” in a Recent post Bitcoin dominance is experiencing a bearish retracement and could potentially drop as much as 42%.
If this happens, the analyst claims it will be extremely bullish for altcoins and potentially mark the start of the much-anticipated altcoin season.
Featured image created with Dall.E, chart from Tradingview.com
