Ethereum price eyes a breakout – Why ETH/BTC’s 0.03 level is key

Going broadly, it seems the markets have hit resistance.

Looking in a bit, most of the major high-cap assets have suffered rejections this week, with Ethereum hitting resistance around $1,900. At the same time, Bitcoin has resistance around $65k, while its dominance has fallen to below 60%. In contrast to this, ETH Dominance has been capped below 11%.

This puts even more emphasis on Ethereum, especially as in Q3 its gains have reached over 2x that of Bitcoin. This naturally makes the ETH/BTC ratio one of the most important ratios to look at in the portion of August that follows this weekend, as it has the potential to really influence capital flows. 

The technicals further enhance this structure.

As the chart above shows, the ETH/BTC ratio has also hit resistance at the 0.03 level, where it has been unable to break through since the early Q1 cycle. Since then, the ratio has tried breaking above this level of resistance twice and failed.

With the entire market showing resistance, this upcoming week is important for Ethereum because another rejection could result in additional resistance for the ratio, but if Ethereum can break out of resistance, then that could convince investors to move their capital into ETH. Additionally, key on-chain signals are suggesting that the market is already preparing for a movement, with the focus primarily on Ethereum.