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As the crypto market prepares to close out the year, the Ethereum Price is showing strength against Bitcoin (BTC) as it targets a mid-high timeframe reversal. A break above a critical resistance level could signal a potential shift in price action, paving the way for Ethereum dominance and a potential rally in Q1 2025.
Ethereum price ready to move away from Bitcoin
A crypto analyst, known as “Daan Crypto Trades”, common a price chart representing the ETH/BTC trading pair, providing detailed analysis of the probability of a reversal and its impact on the strength of the altcoin market. According to the analyst’s post on X (formerly Twitter), Ethereum price is attempting to form a higher low near 0.786. Fibonacci retracement level at 0.0337, signaling the start of a potential trend reversal against Bitcoin.
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The 0.786 Fibonacci level appears to act as a strong support zone, indicating a possible shift from bearish to bullish. Daan also revealed that the 0.04 BTC level has become a key resistance level this must be broken for further bullish momentum to occur.
The analyst pointed out that a break above the 0.04 BTC level would confirm the trend reversal over the medium-high period. If this happens, it could significantly weaken the dominance of Bitcoin and indicate increased strength in altcoins, particularly Ethereum.
In the context of ETH/BTC analysis, a mid-high time frame reversal suggests that Ethereum could establish an uptrend over the next few weeks or months. This time frame is also used to assess broader trends rather than short-term price movements.
Looking ahead, Daan revealed that historically, the ETH/BTC trading pair has performed well during the first quarter of the year, aligning with seasonal trends that typically favor altcoins. If this historical trend continues, the analyst believes that a breakout above the 0.04 Bitcoin level could lead to a significant rally for Ethereum and the altcoin market.
Furthermore, it projected the rally is expected to take place in the first quarter of 2025leading to a significant rise from the 0.040 BTC level to the 0.046 mark, as indicated by the analyst’s chart.
Implications for Altcoin Season
If Ethereum rises above the 0.04 BTC level, it could mark the start of a bullish phase not only for the second-largest cryptocurrency, but for the entire industry. altcoin market. Historically, Ethereum’s market performance has served as a measure of the altcoin’s strength.
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If Bitcoin’s dominance declines, it could trigger a surge in investor interest and demand for altcoins. Currently, the dominance of Bitcoin is standing at 57.8%, still relatively high despite the fall in prices and market volatility.
For the The altcoin season will fully kick offmarket attention will need to shift from Bitcoin to alternative cryptocurrencies. A crypto analyst, identified as the “Crypto Rover”, disclosed in a recent post that Bitcoin’s dominance is undergoing another bearish test and could potentially fall to 42%.
If this happens, the analyst says 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
