Information technology'due south been all almost Bitcoin (BTC) in recent months with altcoins suffering as a result and BTC dominance reaching a new local high of 67.5% over the past few days.

However, a reversal typically occurs one time altcoins start to show such major weakness and altcoin traders are in depression. The leading indicator for such a U-turn is Ether (ETH), which is now in a do or die position against its BTC pair.

New college high for ETH in first uptrend since deport marketplace

ETH/USD one-calendar week chart. Source: TradingView

The nautical chart above speaks for itself, showing a new uptrend since the breakout to a higher place $300 before this yr when buyers immediately stepped in this region. This was a breakout from a multi-year accumulation range, which increases the likelihood of bull market continuation.

Since and so, Ether'due south price broke through $450 and connected its rally toward the recent high at $675. If that becomes the temporary tiptop, a correction towards $450-480 is likely. Yet, such a correction is very healthy for the markets and should provide fuel for the next impulse moving ridge.

Using the Fibonacci extension tool, such an impulse wave could transport ETH cost to $900 and perhaps even $ane,300.

December is historically a expert month to enter altcoins

BTC Say-so 1-week chart. Source: TradingView

Since 2016, the Bitcoin say-so chart has topped out in the month of Dec, followed by a solid quarter for altcoins.

In that perspective, the Bitcoin dominance shows a clear resistance zone at the 67%-69% level. It's hard to phone call this a resistance zone equally the Bitcoin say-so chart isn't an asset that can be traded. But technical assay can all the same be useful in this case.

If the dominance reverses here, so another lower high will be constructed resulting in another elevation for Dec.

Given that the cryptocurrency market is in a bull wheel for the commencement fourth dimension since January 2018, the potential altcoin run may become relatively big in scope. Such a rally could also run into Bitcoin say-so dro to 48%-l%.

ETH/BTC must bounce to bear witness strength

ETH/BTC 1-week chart. Source: TradingView

The weekly chart for ETH/BTC tells the whole story. A breakout above the 0.026 sats earlier this yr propelled the price even higher with Ether rallying toward 0.04 sats — the range resistance from the previous accumulation flow. This resistance couldn't interruption in one-go, later on which ETH/BTC dropped significantly.

The primary bespeak of interest now is the range between 0.0245-0.026 sats every bit that zone used to be the resistance. As long every bit this area holds, more upside should be expected in the offset quarter of 2021.

Notwithstanding, altcoins do non perform well when Bitcoin is volatile. Therefore, Ether and altcoin traders should go along an eye on Bitcoin, which needs to stabilize and/or consolidate to ensure a stiff breakout.

The views and opinions expressed hither are solely those of the writer and practise non necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own enquiry when making a determination.