Ethereum has faced significant resistance at the $3,400 level, struggling to break above this critical barrier as it continues to underperform against Bitcoin. Over the past year, ETH has lagged behind BTC, with Bitcoin outpacing Ethereum by nearly 3x in 2024, according to data from CryptoQuant. This performance disparity has raised concerns among investors, as Ethereum’s underperformance has delayed the much-anticipated altcoin rally.
Despite these challenges, analysts and investors remain optimistic about Ethereum’s potential to recover and spearhead a new altseason. Historically, ETH has often taken the lead in driving gains across the altcoin market once Bitcoin dominance begins to decline. For this to happen, ETH must reclaim its strength relative to Bitcoin and break above the $3,400 resistance level with conviction.
The coming weeks are critical for Ethereum, as a shift in market dynamics is needed to redirect gains from Bitcoin to altcoins. If ETH manages to reverse its trend and outperform Bitcoin, it could signal the start of a broader rally across the altcoin market. Investors are closely watching price action, as its ability to overcome resistance will determine whether the long-awaited altseason becomes a reality.
Ethereum Lags Behind BTC
Ethereum, the second-largest cryptocurrency in the world, has had an underwhelming performance in 2024, significantly lagging behind Bitcoin, which has been on an impressive upward trajectory.
According to data shared by CryptoQuant analyst Axel Adler, while Bitcoin has surged by 164% this year, ETH has only seen a 59% increase. This performance gap of nearly 3x between Bitcoin and ETH highlights a concerning trend for altcoin enthusiasts, as Ethereum’s relative underperformance has limited the broader altcoin market’s growth.
For the crypto market to experience a true altseason, ETH must regain its strength and reclaim the yearly highs around $4,000 it set last March. Ethereum’s dominance has historically been a driving force for altcoins, with many following its lead during strong bullish phases. However, this year, the lack of momentum from ETH has put a damper on the altcoin market, leaving investors to wonder when it will regain its leading position.
If ETH continues to lag behind Bitcoin, the hopes of an altseason with massive gains for altcoins may remain unfulfilled. Therefore, ETH must break through key resistance levels and push towards its yearly highs. Investors and analysts alike are eagerly watching for any signs of recovery from ETH to lead the charge for altcoins.
ETH Testing Key Supply
Ethereum is trading at $3,340 after several days of consolidation below the critical $3,400 supply level. The price has remained resilient, staying above the 200-day Moving Average (MA), which signals long-term strength and suggests that the broader bullish trend may remain intact.
However, ETH has struggled to break above the $3,400 mark, and a failed breakout at this level could cause the price to remain range-bound for the next few weeks, potentially delaying any upward momentum.
For ETH bulls to regain control and push the price toward yearly highs, it is essential for ETH to reclaim the $3,400 level decisively. A strong breakout above this resistance would likely trigger a surge, with the potential to challenge the $4,000 mark again. Without this key breakout, ETH risks further consolidation or even a retracement to lower support levels, which could stall the current bullish outlook.
As the price continues to test this key resistance zone, all eyes are on the $3,400 level. Ethereum’s ability to break through and hold above this level will be crucial in determining whether the altcoin can continue its rally or face additional setbacks in the short term.
Featured image from Dall-E, chart from TradingView