- Ethereum stays strong above key support at 0.03900 BTC with analysts confident momentum could spark another leg higher soon.
- Despite a small pullback Ethereum maintains an upward channel with buyers holding firm as market sentiment leans toward resilience.
- Ethereum faces resistance near 0.04300 BTC yet its steady higher lows show strength that keeps traders optimistic for further gains.
Ethereum faces a critical test as it trades at $4,311.88, slightly down 1.75% in the last 24 hours. The crypto market shows signs of resilience, with a global market cap of $3.82 trillion, marking a 0.28% daily increase. Ethereum’s position against Bitcoin, however, is drawing attention.
Analyst Scient stated, “And there’s the drop on ETH/BTC pair. This is actually good for the overall health of the market.” His comment reflects optimism that Bitcoin dominance rising could eventually pave the way for a stronger altseason.
The Ethereum/Bitcoin pair currently trades at 0.03872 BTC on Kraken. The slight decline of 0.08% comes after weeks of strong performance. Since late July, Ethereum has sustained higher lows, creating a positive upward trendline, according to TradingView’s 4-hour chart. This pattern implies that Ethereum maintains its position in spite of brief setbacks.
Strong Rally and Key Levels
Ethereum started August at 0.03261 BTC, then climbed steadily with momentum building above 0.03300. Buyers drove the pair through resistance at 0.03400 and 0.03500 before peaking above 0.04200. That move represented a near 30% gain from late July lows.
Source: Scient
As a result, Ethereum is currently above its dynamic support trendline, which is located around 0.03900 BTC. This trendline’s technical significance is supported by numerous successful tests, which also point to a strong bullish structure.
Besides the ascending support, horizontal levels remain crucial. The 0.03261 BTC floor continues to act as a strong safety net for traders. However, recent rejections near 0.04300 highlight the challenge of breaking higher. Current consolidation reflects both caution and preparation for another potential breakout attempt.
Market Outlook and Momentum
Volume trends reveal heightened activity during breakouts and stable interest during consolidation. Moreover, Ethereum still trades above its major moving averages. This alignment indicates momentum remains constructive. Additionally, the broader market structure favors Bitcoin strength in the near term, which could later rotate into altcoins.
Therefore, despite its slight decline, Ethereum is still in a strong upward channel relative to Bitcoin. Ethereum may be set up for another leg higher, according to analysts, if there is consistent support above 0.03900.
