Ethereum (ETH) is gaining strength: Is an altcoin rally imminent?

Ethereum ($ETH ), which has begun to gain value against Bitcoin ($BTC), may make altcoin investors happy.

Ethereum has shown stagnant performance recently. The leader of the altcoins, which reached $4,100 on December 2, lost 20 percent in a short time and fell to $3,200. This sharp decline shows that selling pressure in the market continues. However, despite the selling pressure in the markets, a new bullish structure has emerged. According to this structure, sellers may lose dominance. Thus, buyers may more easily push the price upward.

In the ETH/BTC pair, the price fluctuated between support and resistance levels that are getting closer together, creating a symmetrical triangle formation. The fact that this formation belongs to the monthly timeframe further reinforces the possibility of a breakout to the upside. Currently, the price is trading near the support level, which is the lower band of the formation. This indicates that a significant upward movement may begin.

If this formation occurs, the three key levels to watch for ETH/BTC will be 0.0540, 0.0859, and 0.1202, respectively. As these levels are surpassed, Ethereum's strength against Bitcoin will increase.

As the ETH/BTC pair rises towards these levels, positive effects may also reflect on the price of ETH/USDT. Ethereum, which is currently trading at $3,200, may first reach $4,000 if this rally occurs. New peaks may be targets later on. Especially if the ATH is renewed, sharp increases in altcoins may be observed.