As the cryptocurrency market prepares to close out the year,… Ethereum price is showing strength against Bitcoin (BTC) as it pursues a reversal on the mid-high time frame. A break above a critical resistance level could signal a potential shift in price action, paving the way for Ethereum dominance and potential growth in the first quarter of 2025.

Ethereum price ready to break against Bitcoin

Crypto analyst known as “Daan Crypto Trades” common price chart showing the ETH/BTC trading pair with detailed analysis reversal probability and its impact on the strength of the altcoin market. According to an analyst post on X (previously on Twitter), Ethereum price is trying to create a higher low near 0.786 Fibonacci retracement level at 0.0337, signaling the beginning of a potential trend reversal for Bitcoin.

The 0.786 Fibonacci level appears to be acting as a mighty support zone, indicating a possible transition from bearish to bullish. Daan also revealed that the 0.04 BTC level appeared as key resistance level which must be broken for further growth to occur.

The analyst emphasized that the breakout above Level 0.04 BTC would confirm the reversal of the trend of the medium-high time frame. If this happens, it could make a significant difference weaken Bitcoin’s dominance and indicate the increased strength of altcoins, especially Ethereum.

In the context of ETH/BTC analysis, this suggests a reversal of the mid-high timeframe Ethereum may establish a bullish trend in the next few weeks or months. This time frame is also used to assess broader trends rather than short-term price movements.

Going forward, Daan revealed that historically, the ETH/BTC trading pair has performed well in the first quarter of the year, aligning with seasonal trends that typically favor altcoins. If this historical pattern holds, the analyst believes that a break above Bitcoin’s 0.04 level could lead to a significant upside for Ethereum and the altcoin market.

Additionally, it is expected The rally is expected to occur in Q1 2025which resulted in a significant augment from 0.040 BTC to 0.046 as indicated by the analyst chart.

Implications for the Altcoin season

If Ethereum breaks out from the 0.04 BTC level, it may mean the beginning of a growth phase not only for the second largest cryptocurrency, but for the broader market altcoin market. Historically, Ethereum’s market performance has served as a measure of altcoin strength.

If Bitcoin’s dominance declines, it could trigger an augment in investor interest and demand for altcoins. Currently, Bitcoin is dominant standing at 57.8%, still relatively high despite price declines and market volatility.

For The altcoin season is about to begin in full swingmarket attention will have to shift from Bitcoin to alternative cryptocurrencies. Cryptocurrency analyst, identified as ‘Crypto Rover’, exposed wa last post that Bitcoin’s dominance is experiencing a renewed bear test and could potentially drop to 42%.

If this happens, the analyst says it would be extremely bullish for altcoins, potentially marking the start of the anticipated altcoin season.

Featured image created with Dall.E, chart from Tradingview.com