While Bitcoin (BTC) is showing strength through new higher highs and making a new yearly high, Ethereum’s Ether (ETH) is showing weakness, especially the ETH / BTC pair.
The weakness of ETH is also a clear indication that most altcoins are not showing strength as they tend to reflect Ether’s performance.
The 0.03 sat level is a crucial barrier to maintain
The daily chart of ETH / BTC shows a clear rejection at the 0.0325 sats level, through which a renewed test of the 0.03 sats area is taking place. A very likely event is the breakout of this level as the trend has been down since 0.04 sat.
This massive bullish rally reflected the strength of Bitcoin as BTC rallied towards $ 12,000 and Ether towards $ 450, although the latter has remained in a general downtrend against BTC for the past few years.
Interesting weekly levels to keep an eye on on the ETH / BTC chart
Levels to watch are relatively easy to spot over a weekly time frame. If the correction goes further on the ETH / BTC pair, a correction towards 0.026 sat seems likely.
That level is a crucial pivot across multiple topics. The first is the 100-week moving average (MA), which is around that area. This MA should provide steady support, after which a breakout above the 200-week MA would signal further bullish momentum for Ether.
However, prior to the breakout, the previous resistance zone is also around 0.026 sat, through which a nice support / resistance reversal can occur, signaling a continuation upward.
Overall, ETH / BTC broke through a one-year accumulation range, setting a new, higher high. A retest of the previous resistance zone to confirm support is therefore not unlikely.
December / January are the months to join ETH
As history shows, the best time to buy Ethereum was in December and January.
Markets tend to move in cycles, and within cycles some smaller cycles also come into play. In the cryptocurrency market, cycles exist and occur every few months.
One such cycle is the confirmation and fund building for the ETH price, which can signal a potential upside for altcoins. Over the past five years, this bottom construction was established in December and January, after which significant peaks have occurred.
Bitcoin dominance is still eager for a test of the 65-67% level
The dominance of Bitcoin’s market cap is increasing, which is similar to the other quarterly quarters of previous years.
The dominance of bitcoin fell below 65-67%, after which a rally occurred in the altcoin markets. However, there has been no test confirmation that this downtrend is active.
It’s difficult to determine the significance of such a new test (as Bitcoin’s dominance is not a tradable asset), but the domain is in a decent position to rebound.
However, if the dominance fails to rise above 65-67%, further bearish continuation is likely to occur, which could give room for a sharp rally in the altcoins.
Crucial level for ETH / USD to hold
The ETH / USD chart shows a sharp breakout above the $ 380-385 resistance area, with the price of Ether climbing above the $ 400 mark.
However, to confirm the breakout, the $ 380-385 area must now serve as support. If that area fails to become support, the probability of deviation above the range becomes relevant.
In that case, if the price of Ether were to fall below $ 380, a retest of the low range at $ 315-320 becomes very likely.
It’s still not a bad case for the bulls, however, as the markets are always eager to retest the $ 260 and $ 290 levels. Whether these levels are tested is another matter. But eyes should first be on the $ 380 area to hold as support.
If the $ 380-385 area holds, a potential continuation towards $ 440 is on the board. The next question then becomes whether this area of resistance can break to the upside, signaling further strength.
However, as discussed above, this is highly dependent on ETH / BTC starting to show strength.
The views and opinions expressed herein are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your research when making a decision.