The ETH/BTC ratio remains a crucial chart to watch when assessing the altcoin market outlook, according to crypto analyst Miles Deutscher.
With Bitcoin range-bound between $30,000 and $40,000, Deutscher notes that Ethereum needs to reclaim the 0.55 level on the weekly ETH/BTC chart to signal a potential bullish shift for altcoins.
“The most important chart for altcoins: ETH/BTC. $ETH, the leader of the alts, has been bleeding vs $BTC. Until it reverses, it’s unlikely we see any substantial alt rally. I’m watching to see if it reclaims the 0.55 level on the weekly. It has deviated below in the past.”
Ethereum has deviated below this level before without kickstarting an altcoin rally, so caution remains warranted in the near-term. However, a decisive break above 0.55 would mark a notable technical achievement.
At the time of writing, Bitcoin trades around $34,190 while Ethereum hovers below $1,800 – both consolidating after last week’s surge. But this consolidation may continue until stronger directionality emerges in Bitcoin.
While the ETH/BTC chart highlights a key test for Ethereum, Bitcoin requires a more substantial move up or down to impact broader altcoin price action. Levels to watch are $30,000 and $40,000.
In summary, while speculative, a breakout in Ethereum relative to Bitcoin could hint at an impending altcoin season. But prudence remains essential until clear upside price action occurs. monitoring ETH/BTC and Bitcoin price levels is recommended when gauging the altcoin market outlook.
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