In the past few weeks, all eyes have been on the price of Bitcoin, as the world’s largest cryptocurrency rose more than 60% in just a few weeks.
But still, The focus may shift to Ethereum Ether (ETH) once it approaches the ultimate resistance zone prior to a possible major breakout. This applies not only to the US dollar pair, but also to the Bitcoin pair (BTC) as it may have reached its cycle low.
Could this mean that an alternate season is on the horizon? Certainly the signals are getting stronger every day. Let’s take a look at the charts.
The ETH / USD pair will have to break resistance at UDS 450 to rebound
Ether’s weekly chart is battling the last massive resistance zone before USD 600, after which USD 800 is on the horizon.
This resistance zone was largely rejected over the summer, after which a retest of the $ 300 area was conducted. This level of support has held, which means that a retest of this resistance area is now within the medium.
As was said Ether price hit a new higher high, after which switching from support to resistance at $ 310 guaranteed a higher low. This suggests an uptrend where further continuation to USD 800 may only be a matter of time.
ETH / BTC pair finds a bottom
However, the ETH / BTC weekly chart shows a clear rejection at a resistance of 0.04 sats. This rejection marks the top of the current range. By marking this, the likely result was a retest of the 0.026 sats range.
So, Traders should expect such a retest as such levels are often retested before confirming a breakout. And because the fourth quarter isn’t the best time to go for altcoins, Ether could be on the verge of bottoming out in the BTC pair.
With that in mind, the vertical lines mark the bottom of the previous setbacks that bottomed out in December.
In other words, The withdrawal could come to an end if history repeats itself again, meaning the next season could be in the first quarter of 2021 and bring Ether closer to $ 800.
Bitcoin dominance is increasing
Bitcoin’s weekly dominance chart has shown a significant rally over the past few months. Several arguments can be put forward for this increase.
One of them is the historical and cyclical pattern where altcoins tend to underperform in the fourth quarter of the year.
Bitcoin, which is now in the spotlight, is another argument. With a price that is only 20% below the 2017 high in 2017, and the growing acceptance of renowned institutions and investors who own BTC, Bitcoin is cementing its brand as the king of cryptocurrencies.
But still, The 66% to 68% resistance zone is unlikely to break further as the market is currently seeing a change in support / resistance. Bitcoin’s dominance has already been rejected once in this resistance zone.
If history repeats itself, it is very likely that Bitcoin dominance will drop from 56% to 57%, which would be a very bullish sign for altcoin traders.
Will you buy the dip if ETH drops to $ 350?
However, traders shouldn’t get overly optimistic about the resistance where Ether is now. A correction is likely as the fear and greed index is currently showing “extreme greed”, comparable to the June 2019 peak.
When such a correction occurs, the levels around $ 320-340 can be a great opportunity to take a position at ETH.
If Ether establishes support in this area and attacks the resistance at USD 460-480 again, a massive breakout and wave of momentum towards USD 800 would be a very likely outcome.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.