🚨 Ethereum's Next Big Move: Could Q1 Be the Start of a Major Run?

I’m still not fully convinced on Ethereum (ETH) just yet, but the signs are pointing towards something huge. While I’ve explicitly mentioned that I prefer other alts (especially Solana), it looks like we might be nearing a time when Ethereum gains market dominance—at least for a short while.

Let’s dive into why Q1 could be an exciting quarter for ETH and its counterparts, based on time@mode analysis.

The Bullish Reversal is Here

The monthly and weekly downtrends were invalidated last week when ETH spiked to $3232 in a single weekly candle—something that flipped the narrative and caught many off guard. This time, the weekly trend is in control as the downtrend expired and reversed right before hitting its target. What does this tell us? Bulls have taken charge, and we could be on the verge of the last rotation before a major upward trend.

ETH Reversal Incoming?

Why the Weekly Chart Matters Right Now

While the monthly chart gives us a broader picture, it hasn’t yet accumulated enough time duration compared to the weekly. Until we see more than 10 bars on the monthly timeframe, I’ll continue to focus on the weekly for actionable signals. This is crucial in understanding when the trend is truly shifting.

ETH’s Key Demand Zone

Let’s not overlook the demand zone for ETH. The consolidation at $2400 (POC) was a thing of beauty—price held well above $2340, refusing to give a third chance to enter. This shows that bears failed to establish a new low below that level, further confirming the bullish case.

Additionally, ETH's monthly chart held up well with a clean break and retest at $2159, which was the key zone to hold if the bullish trend was to continue (as mentioned in previous updates).

This break triggered a nice monthly trend, with a $6k target in play. Things are looking good, but we need to manage risk as always.

What to Expect Next: The Critical Levels 🔑

If you’re looking to take on more risk in Q1, a retest below $3k could provide fantastic entry points. This aligns with the monthly block that was lost during August's drop, making it a key level to watch.
Alternatively, buying above $3400 could trigger FOMO buyers into ETH. This is a pivotal zone where the bears will likely defend, but I doubt it will hold through Q1.

These two options align with SOLETH, which could experience an exhausting trend between January 6-27, further increasing buying pressure into Ethereum.

SOL against ETH - Trend Expires in January

Bitcoin Dominance: What’s the Next Move? 🧐

Let’s quickly touch on Bitcoin dominance (we briefly discussed this in the Telegram/Discord groups). Bitcoin is showing strength, and I expect that to continue through the end of the year, with a small chance of stretching into February 2025. However, I’m more inclined to see a local top for BTC by EOY, followed by a surge in momentum for alts starting Q1.

In past cycles, it typically takes about 34 weeks post-halving for Bitcoin dominance to start winding down, so we can expect BTC dominance to peak around mid-December.

34 Week Post-Halving Price Movements

The Key Takeaway: Ethereum’s Big Opportunity 🚀

The time to get into Ethereum is near, but timing will be everything. Many already jumped in near $2400, but the true rotation into ETHBTC will be the most beneficial once the trend shifts into full gear—which is still in the works. Stay alert for potential opportunities to start swapping some BTC for ETH come December.

ETH Close to Shifting Against BTC

Wrapping It Up: What’s Next? 🔮

The last chart I keep posting shows a significant bullish engulfing candle on ETH, the first since May 2024. However, the monthly trend is still intact and won’t expire until March 2025. I’m betting on a reversal before then, as other charts suggest a possible change in direction. I’ll update this at the end of the year or sooner if things escalate quickly—because, frankly, things are looking much better for ETH than they have in a while.

Stay tuned and stay sharp, because Ethereum’s next big move could be closer than we think.

Disclaimer: This content was originally published on Zelf Trade.