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As the cryptocurrency market prepares to close out the year,… Ethereum price It is showing strength against Bitcoin (BTC) as it aims for a medium time frame 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 is preparing to breakout against Bitcoin
Cryptocurrency Analyst, known as “Daan Crypto Trades”, subscriber A price chart representing the ETH/BTC trading pair, providing detailed price analysis Reversal probability And its impact on the strength of the alternative currency market. According to Analyst Fibonacci retracement level At 0.0337, indicating the beginning of a potential trend reversal against Bitcoin.
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The 0.786 Fibonacci level appears to be acting as a strong support area, indicating a potential shift from bearish to bullish. Dan also revealed that 0.04 BTC has emerged as a level Major resistance level It must be broken to achieve further upward momentum.
The analyst confirmed that the breakout is above Level 0.04 Bitcoin It will confirm the reversal of the intermediate time frame trend. If this happens, it could be big Weakening Bitcoin’s dominance It indicates the increasing strength of alternative currencies, especially Ethereum.
In the context of ETH/BTC analysis, the mean time frame reversal indicates this Ethereum could establish an uptrend Over the next few weeks or months. This time frame is also used to evaluate broader trends rather than short-term price movements.
Moving forward, Dan revealed that historically, the ETH/BTC trading pair performed well during the first quarter of the year, in line with seasonal trends that typically favor altcoins. If this historical pattern continues, the analyst believes that a break above the 0.04 BTC level could lead to a significant rally in the Ethereum and altcoin market.
Plus, expect this The rise is expected to occur in the first quarter of 2025Resulting in a significant rise from the 0.040 BTC level to the 0.046 mark, as shown in the analyst chart.
Implications of Altcoin Season
If Ethereum breaks the 0.04 BTC level, it could mark the beginning of a bullish phase not only for the second-largest cryptocurrency but also more broadly. Alternative currency market. Historically, Ethereum market performance has served as a measure of the strength of altcoins.
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If Bitcoin’s dominance declines, this could lead to increased investor interest and demand for altcoins. Currently, Bitcoin dominance is Standing By 57.8%, which is still relatively high despite the decline in prices and market fluctuations.
to The beginning of the entire altcoin seasonthe market’s attention will need to shift from Bitcoin to alternative cryptocurrencies. The cryptocurrency analyst, known as ‘Crypto Rover’, has been exposed in a dossier Last post Bitcoin dominance is seeing a bearish retest and will likely drop to 42%.
If this happens, the analyst asserts that it would be incredibly bullish for altcoins, which could mark the start of the expected altcoin season.
Featured image created with Dall.E, chart from Tradingview.com