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Ethereum spent the summer months easily outpacing Bitcoin, but this trend reversed as soon as the fall months hit. The tuning shift towards the DeFi trend helped bring the second cryptocurrency to the downside to retest the resistance turned support.
The new bullish test has since held and could bring the altcoin back to retest its highs against BTC. Here are the key levels to watch and a deeper look at the level of support it has held and why it is so important to the future of the cryptocurrency market.
Altcoins are at the level of Do or Die, Ethereum arrives to save the day
In recent weeks, Bitcoin’s relentless rally to nearly $ 16,000 has sucked capital out of the altcoin market.
The outperformance of the DeFi space eventually resolved hard, bringing Ethereum down and causing the higher alt to drop on the BTC pair.
BTC’s dominance has returned to retest recent highs, sending back once trending altcoins to retest support against Bitcoin.
The monthly chart shows a critical retest and confirmation of resistance turned support | Source: ETHBTC on TradingView.com
Ethereum’s support on the monthly timeframes dating back to 2016 remained strong after the crypto asset claimed the resistance level.
Related reading | Ethereum lagging behind Bitcoin could demonstrate Altcoin’s weakness
A new bullish test over high time frames could signal that altcoins are about to turn against the Bitcoin trend.
Reverse head and shoulders on the ETHBTC trading pair could cause the ratio to return to highs
If Ethereum can continue to hold above the monthly support level, it could lead to the completion of a reverse head and shoulder chart formation.
This type of chart pattern is often an underlying pattern, which could indicate a longer recovery in Ethereum against the first ever cryptocurrency.
Il grafico settimanale mostra una testa e spalle inversa in divenire con un obiettivo del + 100% | Fonte: ETHBTC su TradingView.com
From the tip of the head to the neckline of the structure, it was a 120% run. According to the measurement rule, applying the pattern height at the breakout point provides a target potential of nearly 0.08 on the ETHBTC ratio.
Related reading | Ethereum Matching Market Psychology Roadmap leads to Bull Run Next
The highest price ever recorded on the report was 0.15, making an Ethereum worth around 15% per single BTC. Today, Ethereum is trading at just under 3% of the price of a Bitcoin, but if the model completes, it will get very close to 10% before the summer of next year.
And when Ethereum finally rises after confirming the key level as support, it could take the rest of the altcoin market with it and officially begin the new crypto bull run.
Featured image from Deposit Photos, Charts from TradingView.com
