The first quarter of 2024 could be a challenging but extremely exciting time for crypto investors. While the focus was primarily on Bitcoin in the fourth quarter of last year and early January, interest has gradually shifted to Ethereum and the altcoin market as a whole. ETH/BTC chart analysis takes into account the changing dynamics that could lead to an unprecedented altcoin season.

ETH/BTC chart analysis: Ethereum is gaining momentum, while Bitcoin is slowing down.

The $0.0574 ETH/BTC trading pair is holding above an important support area, indicated by the 0.382 Fibonacci ratio, near $0.0573. Just below the same demand zone is the 200-day exponential moving average (EMA) (blue line on the chart).

With the Relative Strength Index (RSI) neutral but sliding towards the midline and oversold area, ETH/USD could push harder into the above support area. Firmly holding the Fibonacci level above 0.382 will make Ethereum stronger, hinting at a larger price breakout for the coin. Ethereum will weaken against Bitcoin if the same support gives way.

The technical structure on the daily chart is no different, with ETH/USD expected to bounce off the 0.382 Fibonacci support level. Stronger Bitcoin hit the demand zone in January, causing a sharp fall to $0.051, highlighting the importance of keeping selling pressure in check.

The upcoming Dencun update could be a powerful weapon for Ethereum bulls against Bitcoin. This update has many benefits for Ethereum as a network and its underlying layer 2 scaling solutions such as Arbitrum and Polygon.

However, there is a high chance that ETH/USD will bounce off the green support area for another focused attempt to overcome the trend line resistance made last September. If this resistance is broken, Ethereum will become extremely bullish, paving the way for a broad-based rally in the altcoin market.

The potential Ethereum spot ETF is another key factor to consider when trading the ETH/BTC pair, especially over the long term. Experts expect a similarly bullish outlook for Ethereum if the SEC approves products that allow traditional investors to access ETH on the stock market without having to worry about the complexities of cryptocurrency, including exchanges and custody.

However, the Bitcoin halving, which is scheduled to take place in April, could change the situation, pushing BTC prices higher towards the end of the year and then into 2025.