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As the crypto market prepares to close the year, the Ethereum priceis showing strength against Bitcoin (BTC) as it aims for a mid-high timeframe reversal. A breakout above a critical resistance level could signal a potential shift in price action, paving the way for Ethereum’s dominance and potential rally in Q1 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, providing a detailed analysis of the probability of a reversaland its impact on the strength of the altcoin market. According to the analyst’s X (formerly Twitter) post, the Ethereum price is attempting to form a higher low near the 0.786 Fibonacci retracement levelat 0.0337, signaling the start of a potential trend reversal against Bitcoin. Related Reading El Salvador Bitcoin Buying Spree Continues, BTC Holdings Now At 6,000 21 hours ago Source: X
The 0.786 Fibonacci level appears to act as a strong support zone, indicating a possible shift from bearish to bullish. Daan also disclosed that the 0.04 BTC level has emerged as a key resistance levelthat needs to be broken for further bullish momentum to occur.
The analyst emphasized that a breakout above the 0.04 BTC levelwould confirm the mid-high timeframe trend reversal. If this happens, it could significantly weaken Bitcoin’s dominanceand indicate an increased strength in altcoins, especially Ethereum.
In the context of the ETH/BTC analysis, a mid-high timeframe reversal suggests that Ethereum could establish a bullish trendover the next few weeks to months. This timeframe is also used to assess broader trends rather than short-term price movements.
Moving forward, Daan revealed that historically, the ETH/BTC trading pair have performed well during the first quarter of the year, aligning 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.
Additionally, this projected rally is expected to occur in Q1 2025, resulting in a significant surge from the 0.040 BTC level to the 0.046 mark, as indicated by the analyst’s chart. Implications On The Altcoin Season
If Ethereum breaks out of the 0.04 BTC level, it could mark the beginning of a bullish phase not just for the second-largest cryptocurrency but for the broader altcoin market. Historically, Ethereum’s market performance has acted as a measure of altcoin strength. Related Reading XRP Price Prediction: Fibonacci And Elliott Wave Analysis Suggests $15 By May 2025 1 day ago
If Bitcoin’s dominance declines, it could trigger a surge of interest and demand from investors to altcoins. Currently, Bitcoin’s dominance is standingat 57.8%, still relatively high despite price declines and market volatility.
For the altcoin season to fully kickstart, the market’s attention will need to shift from Bitcoin to alternative cryptocurrencies. A crypto analyst, identified as the ‘Crypto Rover’, disclosed in a recent postthat Bitcoin’s dominance is experiencing a bearish retest and could potentially decline to 42%. Source: X
If this occurs, the analyst asserts that it would be incredibly bullish for altcoins, potentially marking the start of the anticipated altcoin season. ETH price suffers sharp dip | Source: ETHUSDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com