Ethereum Poised for Run Against Bitcoin
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- Ethereum is poised to gain more ground over Bitcoin
- The ETH/BTC chart shows that Ethereum has turned a key resistance dating back to 2018 into support
- Bitcoin dominance is also sitting at crucial support
Ethereum has turned a key level of resistance against Bitcoin dating back to 2018 into support, suggesting that it is ready to rally further against Bitcoin. With Bitcoin dominance also at a historically crucial support level, it’s clear that we are on the verge of either an alt rally against Bitcoin or a Bitcoin rally against alts.
Ethereum Chart Looking Fantastic
As we can see from the ETH/BTC chart, ETH is perfectly placed to continue the rally it has been on since bottoming out this time last year:
Ethereum has put on a 4x compared to Bitcoin in the past 12 months, breaking through the resistance zone of 0.08 towards the end of November. Crucially this region has now flipped from resistance to support, giving Ethereum a platform from which to make further inroads into Bitcoin.
As for where Ethereum can go from here, there are two key areas of resistance which represent very healthy targets:
0.1 is a symbolic as well as a strategic target for Ethereum, with 0.14 representing the final clear resistance level and getting Ethereum back to where it was in mid-2017 against Bitcoin. If Ethereum can get above that then all bets are off as far as where it can go.
Bitcoin Dominance at Key Support
Of course, a rise in Ethereum against Bitcoin is suggestive of a bullish altcoin market in general, and a look at the Bitcoin dominance chart suggests that, indeed, a big move could be imminent:
Bitcoin dominance is sitting at a support line that has held on multiple occasions since 2018, which typically suggests that Bitcoin season is imminent. However, with Ethereum poised to make further moves against Bitcoin, could we finally see this multi-year support broken and alts break new ground against Bitcoin?
If Bitcoin dominance does fall through this crucial support line it would suggest a dramatic shift in the balance of power in the crypto markets is on the table, and could see alts taking much more market presence away from Bitcoin in 2022.