Ethereum Price Targets Mid-High Timeframe Reversal Against Bitcoin in Q1 2025
As the crypto market approaches year-end, the Ethereum price is exhibiting strength against Bitcoin (BTC), targeting a mid-high timeframe reversal. A breakout above a key resistance level may indicate a shift in price action, potentially leading to Ethereum's dominance and rally in Q1 2025.
Ethereum Price Poised For Breakout Against Bitcoin
Crypto analyst Daan Crypto Trades shared a price chart of the ETH/BTC trading pair, analyzing the potential for a reversal and its implications for the altcoin market. The Ethereum price is attempting to form a higher low near the 0.786 Fibonacci retracement level at 0.0337, suggesting the beginning of a trend reversal against Bitcoin.
The 0.786 Fibonacci level serves as strong support, indicating a possible transition from bearish to bullish. The 0.04 BTC level has emerged as a key resistance level that must be surpassed for further bullish momentum. A breakout above this level would confirm a mid-high timeframe trend reversal, potentially diminishing Bitcoin’s dominance and enhancing altcoin strength, particularly Ethereum.
A mid-high timeframe reversal indicates that Ethereum could establish a bullish trend over the coming weeks to months, reflecting broader trends rather than short-term fluctuations.
Daan noted that historically, the ETH/BTC trading pair performs well in Q1, aligning with seasonal trends favoring altcoins. If this pattern continues, a breakout above 0.04 BTC may lead to a significant rally for Ethereum and the altcoin market.
This anticipated rally is expected in Q1 2025, projecting a rise from the 0.040 BTC level to approximately 0.046, as shown in the analyst’s chart.
Implications On The Altcoin Season
A breakout above the 0.04 BTC level could signal the onset of a bullish phase for Ethereum and the broader altcoin market. Historically, Ethereum’s performance has been indicative of altcoin strength.
If Bitcoin’s dominance declines, it may spur interest and demand for altcoins. Currently, Bitcoin’s dominance stands at 57.8%, remaining high despite recent price declines and market volatility.
For an altcoin season to commence fully, focus must shift from Bitcoin to alternative cryptocurrencies. Analyst 'Crypto Rover' indicated that Bitcoin’s dominance is undergoing a bearish retest, possibly falling to 42%.
A decline to this level would likely be very bullish for altcoins, potentially marking the start of the anticipated altcoin season.
