Ethereum price is continuing to show weakness against Bitcoin despite its latest rally above $400

While Bitcoin is showing strength through new higher highs and making new yearly highs, Ethereum price shows weakness, especially the ETH/BTC pair. ETH’s weakness is also a clear sign that most altcoins are also not showing strength as they tend to reflect Ether’s performance. The 0.03 sats level is an important barrier to keep.

Ethereum price is continuing to show weakness against Bitcoin despite its latest rally above $400

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ETH/BTC 1-day chart | Source: TradingView

The daily chart of ETH / BTC shows a clear rejection at 0.0325 sats, thereby starting a new level of testing against the ongoing 0.03 sats area. A most probable breakdown is a breakdown of this level as the trend has been down since 0.04. This massive rally reflects Bitcoin’s strength as BTC surged to $ 12,000 and Ether to $ 450, although it has since remained in a general downward trend against BTC in recent years.

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ETH/BTC 1-week chart | Source: TradingView

The levels to keep an eye on are relatively easy to spot on the weekly timeframe. If correction continues on the ETH / BTC pair, it looks likely to correct toward 0.026 sats. That level is an important pivot through many arguments. The first line is the 100-week moving average (MA), located around that zone. This MA will provide consistent support, after which a break above the 200-week MA will signal further bullish momentum for Ether.

However, before breaking out, the previous resistance is also around 0.026 sats, thereby a nice support/resistance flip, signaling a continuation up. Overall, the ETH / BTC pair has broken out of its one-year accumulation range, setting new highs higher. Therefore, retesting the previous resistance to confirm support is not unlikely to happen.

December or January is two months, so join ETH

As history shows, the best times to buy Ethereum are in December and January. Markets tend to move cyclically, and in cycles, some smaller cycles come into play. In the crypto market, the cycle exists and happens every few months.

One of those cycles is to confirm and build a bottom for the ETH price, which could signal a potential rally for altcoins. Over the past 5 years, this bottom construction was established in December and January, after which spikes occurred.

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BTC dominance 1-week chart | Source: TradingView

Bitcoin’s market cap dominance is on the rise, similar to other fourth quarters in previous years. Bitcoin Dominance broke below 65% – 67%, after which a rally on the altcoin markets happened. However, there hasn’t been any re-confirmation that this downtrend is in action.

It is difficult to determine the importance of such retesting (as the Bitcoin Dominance index is not a tradable asset), but this dominance is in a good position to recover. However, if the index fails to cross 65% – 67%, then a further decline will occur, which could make room for altcoins to surge.

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ETH/USDT 1-day chart | Source: TradingView

The ETH / USD chart shows a clear break above the $ 380 – $ 385 resistance zone, with the price of Ether rising above the $ 400 mark. However, to confirm the breakout, the $ 380 – $ 385 zone must now support. If that area does not become support, the possibility of a bias across the range becomes relevant. In that case, if the price of Ethereum price breaks below $ 380, a retest of the range at as low as $ 315 – $ 320 is likely.

However, that is still not a bad case for the bulls as the market is eager to re-test the $ 260 and $ 290 levels. Will those levels be tested? Another problem. But first, eyes should stay in the $ 380 zone to hold as support.

If the $ 380 – $ 385 zone holds, then the possibility of a continuation towards $ 440 is on the board. The next question then becomes whether this resistance zone can break upwards, signaling strength to continue. However, as discussed earlier, this depends heavily on whether ETH / BTC starts to show strength.

You can see the Bitcoin price here.

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