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Ethereum faced significant resistance at the $3,400 level, and is struggling to break through 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 disparity in performance has raised concerns among investors, as Ethereum’s poor performance has delayed the long-awaited altcoin rally.
Despite these challenges, analysts and investors remain optimistic about Ethereum’s potential to recover and lead a new alternative season. Historically, ETH has often taken the lead in making gains across the altcoin market once Bitcoin’s dominance begins to decline. For this to happen, ETH must regain its strength relative to Bitcoin and break above the $3,400 resistance level with conviction.
The coming weeks are crucial for EthereumBecause a shift in market dynamics is needed to redirect gains from Bitcoin to altcoins. If ETH can reverse its trend and outperform Bitcoin, it could signal the beginning of a broader rally across the altcoin market. Investors are watching the price action closely, as its ability to overcome resistance will determine whether the long-awaited swing season becomes a reality or not.
Ethereum is lagging behind BTC
Ethereum, the world’s second-largest cryptocurrency, had a disappointing performance in 2024, lagging significantly behind Bitcoin, which had been on an impressive upward trajectory.
According to data shared by CryptoQuant analyst Axel AdlerWhile Bitcoin is up 164% this year, ETH has only seen a 59% increase. This nearly 3x performance gap between Bitcoin and ETH highlights a worrying trend for altcoin enthusiasts, as the relative poor performance of Ethereum has limited the growth of the broader altcoin market.
For the cryptocurrency market to experience a true swing season, ETH must regain its strength and reclaim the yearly highs of around $4,000 it hit last March. Historically, Ethereum’s dominance has been the driving force for altcoins, with many following in its footsteps during strong bullish phases. However, this year, the lack of momentum from ETH has held back the altcoin market, leaving investors wondering when it will regain its leadership position.
If ETH continues to lag behind Bitcoin, hopes for an alternative season with massive gains for altcoins may remain unrealized. Therefore, ETH should break through key resistance levels and push towards yearly highs. Investors and analysts alike are eagerly watching for any signs of a rebound from ETH to drive altcoin buying.
ETH main supply test
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), indicating long-term strength and suggesting that the broader uptrend may remain in place.
However, ETH is struggling to break above the $3,400 level, and a failed breakout at this level could see the price remain within the range over the next few weeks, which could delay any bullish momentum.
For ETH bulls to regain control and push the price towards yearly highs, it is necessary for ETH to decisively reclaim the $3,400 level. A strong break above this resistance is likely to trigger a rally, with the potential to challenge the $4,000 mark once again. Without this major breakout, ETH risks further consolidation or even a bounce to lower support levels, which could disrupt the current bullish outlook.
As the price continues to test this key resistance area, 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 by Dall-E, chart from TradingView
