Ethereum (ETH) is showing some serious strength against Bitcoin (BTC) lately, hinting at a big turnaround. A successful break past a key resistance level could mean a major shift, boosting Ethereum and potentially leading to a rally early in 2025.
Ethereum’s Breakout Potential
Crypto analyst “Daan Crypto Trades” shared a chart showing ETH/BTC, suggesting a possible reversal. The chart shows Ethereum trying to build a higher low near the 0.0337 level (a Fibonacci retracement level), which could signal a shift from bearish to bullish.
The big hurdle? Breaking through the 0.04 BTC resistance level. If Ethereum manages this, it would confirm a significant trend reversal. This would likely weaken Bitcoin’s dominance and give altcoins, especially Ethereum, a big boost.
This isn’t just a short-term prediction. Daan is talking about a mid-to-high timeframe reversal – a change in trend lasting weeks or months. Historically, ETH/BTC has done well in Q1, so a breakout above 0.04 BTC could trigger a rally to around 0.046 BTC by Q1 2025.
Altcoin Season on the Horizon?
An Ethereum breakout could be huge for the entire altcoin market. Ethereum’s performance often reflects the overall health of altcoins. If Bitcoin’s dominance falls, investors might shift their focus to other cryptocurrencies.
Right now, Bitcoin’s dominance is at 57.8%, still pretty high. But another analyst, “Crypto Rover,” suggests Bitcoin’s dominance could drop to 42%, which would be incredibly bullish for altcoins and could mark the start of a long-awaited altcoin season.
