Crypto analyst Michael van de Poppe highlighted a crucial development on ETH/BTC’s 4-hour chart that could impact the altcoin market. In an X post, Poppe showed how the crypto pair failed to break above a notable resistance and outlined a potential outcome.
Sad life again, $ETH rejecting at 0.04 BTC and selling off.
I think that’s the crucial barrier. If it breaks through 0.04 BTC, we’ll be good to go with the #Altcoins. pic.twitter.com/tvZHmq5PLo
— Michaël van de Poppe (@CryptoMichNL) October 16, 2024
Poppe included a screenshot of the ETH/BTC 4-hour chart showing that the relative price of Ethereum to Bitcoin was unable to break above 0.04 BTC. Poppe found this development disappointing for the altcoin market, noting it triggered an Ethereum selloff. However, he views the level as a crucial barrier that could trigger a change in the narrative for altcoins.
Independent of Bitcoin, Ethereum gained over 16% last week. The altcoin rallied from a $2,327 swing low on October 10 to reach $2,687 on October 15th. This price action leaves Ethereum trading within a sideways range established on September 16, marking one month of a classic sideways trend.
The ETH/USD daily chart shows the flagship altcoin encountered resistance at the 0.382 Fibonacci retracement level from the price decline that began in the last week of July. Since then, Ethereum has had trouble regaining its bullish momentum, facing significant resistance at intervals.
Read also: Altcoin Season Dawning? Analyst Sees Bullish Shift
The confluence of events suggests the identified level as a region of notable resistance, above which the bulls may regain control of the top altcoin. Despite this, Ethereum remains a leader in the altcoin market, as evidenced by the behavior of most other digital assets.
Other top altcoins like Solana and BNB also encountered slight resistance around the same time as Ethereum. However, the bullish sentiment across the altcoin market is still present, with analysts expecting a breakout to the upside soon. According to Poppe’s analysis, an ETH/BTC break above 0.004 BTC could signal the start of the long-awaited altcoin season.
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