- Ethereum’s BTC pair is approaching the 0.0285 BTC resistance level, with a potential breakout on the horizon.
- Analyst Michael Van De Poppe predicts a 10-30% surge in altcoins if ETH breaks above this level.
- Macroeconomic factors could act as a catalyst for the move, with traders monitoring developments closely.
The price of Ethereum against Bitcoin is approaching a critical resistance level and market analysts anticipate a breakout that could trigger a broader altcoin rally.
Crypto analyst Michael Van De Poppe highlighted the 0.0285 BTC level as a key threshold for ETH/BTC. In a market update, he stated, “The first jump on ETH is happening when it breaks 0.0285.”
He also mentioned that new macroeconomic news could add to this sentiment. Importantly, he thinks altcoins could jump 10-30% soon.
The ETH/BTC pair has been consolidating after a sharp decline earlier this month. A breakout above 0.0285 BTC could signal renewed strength for Ethereum and a shift in market momentum favoring altcoins.
Macroeconomic Factors Could Influence Move
Van De Poppe’s comment about macroeconomic news suggests that broader financial developments, such as inflation data, interest rate decisions, or regulatory updates, could impact Ethereum’s movement.
Related: Ethereum Price Set for $4K Breakout as Upgrades Propel Rally
Past crypto market behavior shows it reacts to Federal Reserve comments, CPI reports, and global economic trends. This makes outside forces a possible trigger for ETH’s next move.
Altcoin Rally in Sight?
Should Ethereum successfully break through resistance, traders expect capital rotation from Bitcoin into altcoins, leading to double-digit percentage gains in the broader market.
Historically, ETH/BTC breakouts have often marked the beginning of altcoin seasons. That’s when altcoins do better than Bitcoin for a while.
Related: Is Ethereum Making a Comeback? Analyst Predicts New ATH in February
Ethereum’s Volatility & Investor Sentiment
Earlier this week, analyst Markus Thielen pointed out that Ethereum has been more volatile than Bitcoin in recent weeks, showing less predictable price movements. He believes this volatility could present significant opportunities for investors, especially with major events, such as ETF approval, on the horizon.
Despite ETH’s potential breakout, market sentiment remains largely negative. Van De Poppe earlier noted that short positions on ETH are at an all-time high, indicating a bearish outlook among traders.
However, Thielen argued that such extreme pessimism has historically created buying opportunities. “Ethereum is not a coin to which to get emotionally attached. History shows that opportunities emerge when sentiment turns overwhelmingly pessimistic,” Thielen remarked.
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