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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 points to a reversal in the medium-high time frame. A break above a critical resistance level could signal a possible reversal in price action, paving the way for ethereum dominance and a possible rally in the first quarter of 2025.
ethereum Price Set to Break bitcoin
A crypto analyst, known as 'Daan crypto Trades', <a target="_blank" style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif" href="https://x.com/daancrypto/status/1873474573716557855?s=46″ target=”_blank” rel=”nofollow”>shared a price chart representing the eth/btc trading pair, providing a detailed analysis of the <a target="_blank" style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif" href="https://bitcoinist.com/ethereum-gears-up-for-a-recovery-toward-3659/amp/” target=”_blank” rel=”nofollow”>probability of a reversal and its impact on the strength of the altcoin market. According to the analyst post on x (formerly twitter), ethereum price is attempting to form a higher low near 0.786. <a target="_blank" href="https://bitcoinist.com/bitcoin-price-recovery-150000/amp/” rel=”nofollow”>Fibonacci Retracement Level at 0.0337, indicating the start of a possible trend change 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 emerged as a key resistance level that must be broken for further bullish momentum to occur.
The analyst emphasized that a break above the 0.04 btc level would confirm the reversal of the trend in the medium-high time frame. If this happens, it could significantly <a target="_blank" href="https://bitcoinist.com/bitcoin-dominance-breakdown-confirmed-the-next-altseason-is-right-around-the-corner/amp/” rel=”nofollow”>weaken bitcoin's dominance and indicate greater strength for altcoins, especially ethereum.
In the context of eth/btc analysis, a medium-high timeframe reversal suggests that <a target="_blank" href="https://bitcoinist.com/ethereum-gears-up-for-a-recovery-toward-3659/amp/” rel=”nofollow”>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, Daan revealed that historically, the eth/btc trading pair has performed well during the first quarter of the year, aligning with seasonal trends that generally 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.
Furthermore, this projection The rebound is expected to occur in the first quarter of 2025.resulting in a significant increase from the 0.040 btc level to the 0.046 mark, as indicated by the analyst chart.
Implications on the 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 for the rest. altcoin market. Historically, ethereum market performance has acted as a measure of altcoin strength.
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If bitcoin's dominance declines, it could trigger a surge in investor interest and demand for altcoins. Currently, bitcoin's dominance is <a target="_blank" href="https://www.tradingview.com/symbols/btc.D/”>standing 57.8%, still relatively high despite falling prices and market volatility.
For him <a target="_blank" href="https://bitcoinist.com/is-bitcoin-dominance-about-to-give-way-to-altseason-analysts-react/amp/” rel=”nofollow”>Altcoin season will fully beginThe market's attention will have to shift from bitcoin to alternative cryptocurrencies. A crypto analyst, identified as 'crypto Rover', revealed in a <a target="_blank" href="https://x.com/rovercrc/status/1873424493131264152?s=46″ rel=”nofollow”>recent post that bitcoin dominance is undergoing a bearish retest and could potentially fall to 42%.
If this happens, the analyst says it would be incredibly bullish for altcoins, which could usher in the long-awaited altcoin season.
Featured image created with Dall.E, chart from Tradingview.com
