Has Ethereum Just Bottomed Against Bitcoin? This is the last big hurdle before $ 600

All eyes have been on Bitcoin’s price in recent weeks as the world’s largest cryptocurrency has rallied over 60% within a few weeks.

However, the focus may soon shift to Ethereum’s Aether (ETH) as it approaches the final resistance zone before a major potential breakout. This is not only the case with the US dollar pair, but also with the Bitcoin (BTC) pair, as the latter may have just hit its cyclical low.

Could this mean that there is an alternate season on the horizon? The signs are certainly getting stronger by the day. Let’s take a look at the rankings.

ETH / USD must break through the $ 450 resistance to break out

Ether’s weekly chart is battling the last massive resistance zone before $ 600, with $ 800 on the horizon thereafter.

This resistance zone was heavily pushed back in the summer, after which a retest of the $ 300 area took place. This support level held, which means a retest of this resistance area is now on the table. .

As stated, the price of Ether reached a new higher high, after which the $ 310 support / resistance rollover guaranteed a higher low. This indicates an uptrend, where further continuation to $ 800 may only be a matter of time.

Does ETH / BTC find the bottom?

The weekly chart for ETH / BTC, however, shows a clear rejection at the 0.04 sat resistance. This rejection marks the top of the current range. Through this sign, a re-test of the 0.026 sat area was the likely result.

Therefore, traders should have expected such a retest because such levels are often retested before a breakout is confirmed. And since the fourth quarter is not the best time for altcoins, Ether may be close to finding a low in the BTC pair.

In this regard, the vertical lines mark the bottom of the previous retraces, all of which hit bottom in December.

In other words, the retracement could come to an end if history repeats itself once again, meaning the next alternate season could occur in the first quarter of 2021 and bring Ether closer to $ 800.

The dominance of bitcoins is on the rise

Bitcoin’s weekly dominance chart has shown a clear rally over the past few months. Several arguments can be made for this wave.

One of these is the historical and cyclical pattern, during which altcoins tend to underperform in the fourth quarter of the year.

Bitcoin now in the spotlight is another topic. With the price now just 20% less than its all-time high in 2017, coupled with increasing acceptance by institutions and Big investors who reveal that they hold BTC, Bitcoin is solidifying its brand as the king of cryptocurrencies.

However, the 66% to 68% resistance zone is unlikely to break any further, as the market is currently seeing a support / resistance rollover. Bitcoin’s dominance has already been rejected once in this resistance zone.

If history repeats itself, a 56% to 57% drop for Bitcoin dominance is very likely to occur, which would be a very bullish sign for altcoin traders.

Buy the drop if ETH drops to $ 350?

However, traders shouldn’t get too bullish on the resistance, which is where Ether is right now. A correction is likely as the Fear & Greed Index currently shows “extreme greed”, comparable to levels seen at the June 2019 high.