NewsletterETH/BTC Chart Analysis: Is Ethereum’s Rally Against Bitcoin Ushering In the Altcoin Season?
Highlights
- ETH/BTC pair holds support at 0.382 Fibonacci level and the 20-day EMA in the four-hour range.
- The Dencun upgrade is Ethereum’s 'magic wand’ likely to trigger altcoins’ rally.
- Bitcoin having due in April set to usher in an unprecedented parabolic run.
The first quarter of 2024 is proving to be an exciting era for crypto investors. While attention was majorly on Bitcoin in Q4 last year and in early January, interest has been gradually shifting to Ethereum and the altcoin market in general. The ETH/BTC chart analysis takes into account the changing dynamics, that could result in an unparalleled altcoin season.
ETH/BTC Chart Analysis: Ethereum Fires Up As Bitcoin Stalls
The ETH/BTC trading pair with a value of $0.0574 holds above an important support area highlighted by the 0.382 Fibonacci ratio around $0.0573. Slightly below the same demand zone is the 200-day Exponential Moving Average (EMA) (the blue line on the chart).
With the Relative Strength Index (RSI) neutral but sliding toward the midline and the oversold region, ETH/USD could push harder on the above support area. Holding firmly above the 0.382 Fibo would make Ethereum stronger, insinuating a larger breakout in ETH price. Ethereum will weaken against Bitcoin if the same support caves.
The technical structure on the daily chart is no different, with the ETH/USD pair expected to bounce off the 0.382 Fibonacci support level. A stronger Bitcoin in January butchered the demand area, causing a flash drop to $0.051, underscoring the importance of controlling sell-side pressure.
The upcoming Dencun upgrade is likely the secret weapon Ethereum bulls have against Bitcoin. This upgrade has many benefits for Ethereum as a network and its underlying layer 2 scaling solutions such as Arbitrum and Polygon.
Assessing ETH/USD Weekly Technical Structure
Several key levels would determine where the ETH/BTC pair heads in the coming days or weeks. For starters, support highlighted by the green band on the weekly chart has been tested more than once — in May, in Dec/Jan, and in February.
That said, there is a high chance ETH/USD will rebound from the green-colored support area for another targeted attempt at the trend line resistance from September last year. Ethereum will emerge extremely bullish if this resistance is broken, paving the way for widespread rallies in the altcoin market.
A potential spot Ethereum ETF is another key factor to keep in mind while trading the ETH/BTC pair, especially long-term. Experts anticipate the same bullish outlook for Ethereum if the SEC greenlights the products that allow traditional investors to seek exposure to ETH on the stock market without having to worry about the complexities of crypto including exchanges and storage.
However, the Bitcoin halving due in April may turn the tables around, bolstering BTC price rally toward the end of the year and subsequently in 2025.
- Expert Predicts Further Downside For Bitcoin As Fear and Greed Index Drops To 10
- Solana and XRP ETFs Attract Fresh Inflows Even as Crypto Market Falls
- BLS to Release Jobs Report on Nov. 20 as Uncertainty Over Fed Rate Cut Persists
- JPMorgan calls Bitcoin Price Bottom, Predicts It Will Challenge Gold Next Year
- Zcash to Surpass XRP? Arthur Hayes Makes Bold Claim Amid ZEC’s 45% Rally
- Litecoin Price: With a 12% Surge and Pearson BTC Correlation at –0.01, Is LTC Gearing Up for $125?
- What’s Next for Chainlink Price After 53.87 Million Tokens Accumulated
- What the New Bitcoin Model Predicts About a Possible $200K BTC Price Target?
- Zcash Price Soars 45%: Here’s Why
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
