As the cryptocurrency market approaches the year’s end, Ethereum is demonstrating strong momentum against Bitcoin , positioning itself for a possible reversal in mid to high timeframes. Should Ethereum manage to break through a vital resistance level, it could herald a shift in market dynamics, potentially leading to increased dominance for Ethereum and a significant rally in the first quarter of 2025.
Recent analyses of the ETH/BTC trading pair suggest that Ethereum is attempting to form a higher low near the 0.786 Fibonacci retracement level of 0.0337. This development hints at a potential bullish reversal against Bitcoin . The 0.786 Fibonacci level appears to serve as a robust support zone, indicating a possible transition from a bearish to a bullish sentiment. A critical resistance level for Ethereum has been identified at 0.04 BTC, which analysts believe must be surpassed for sustained upward momentum.
A confirmed breakout above the 0.04 BTC level could signal a more pronounced mid to high timeframe trend reversal for Ethereum . Such a scenario would likely diminish Bitcoin ’s dominance and reflect growing strength among alternative cryptocurrencies, particularly Ethereum . Historically, the ETH/BTC pair tends to perform well in the first quarter of the year, a factor that adds weight to the potential for Ethereum to lead an altcoin rally during this period.
If Ethereum successfully breaks the 0.04 BTC level, it may not only trigger a bullish phase for the cryptocurrency itself but also invigorate the broader altcoin market. The current Bitcoin dominance stands at 57.8%, which remains relatively elevated despite the volatility in prices. For a true altcoin season to commence, investor focus will need to shift from Bitcoin to alternative cryptocurrencies, with some analysts suggesting that a decline in Bitcoin ’s dominance to around 42% could initiate the anticipated rise in altcoin interest and demand. This potential shift promises exciting developments in the cryptocurrency landscape heading into 2025.
