Altcoin Outlook Hinges on ETH/BTC Breakout Zone, Says Crypto Expert

After a sharp short squeeze, ETH/BTC has been consolidating within the 0.022–0.026 range.

Daan notes that a breakout above the 0.026 level could trigger renewed strength in altcoin-to-BTC trading pairs—particularly for Ethereum-linked assets such as DeFi tokens, ETH memecoins, and Layer 2 projects.

However, caution is warranted if the pair falls below the 0.0224 horizontal level. A breakdown from that support could signal a retracement of the prior squeeze, potentially dragging altcoins down relative to BTC—even if USD values remain stable.

Daan emphasized that this dynamic doesn’t necessarily mean altcoin prices must fall in dollar terms. Instead, it may reflect relative underperformance compared to Bitcoin, which could rally sharply while altcoin/BTC ratios drop. As has been typical in this cycle, a strong BTC rally often comes at the expense of altcoin ratios.

The chart marks three key zones:

Above 0.026: Bullish for altcoins. Between 0.0224 and 0.026: Choppy and uncertain. Below 0.0224: Caution territory for altcoins.

With the ETH/BTC pair trading near the midpoint of this range, traders remain on watch for the next decisive move.

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