Bitcoin (BTC) is currently approaching $ 40,000 after seeing massive gains in the first seven days of 2021. This is a 100% increase from the previous record level in December 2017. In other words, the price levels it took Bitcoin three years to recover. now earn nearly doubled in a matter of weeks.

ETH, BTC price increases, January 2021. Source: Digital Assets Data

Meanwhile, the price of Ether (ETH) has increased by more than 100% in three weeks. However, it has yet to break its all-time high of around $ 1,420 on January 13, 2018.

Therefore, the primary question is whether altcoins will underperform, keep up, or outperform BTC in the near term. Let’s take a look at the ETH price charts to get an idea of ​​where this “altseason” might be heading in the short term.

Ether hits the second Fibonacci level for a potential top

ETH / USD 3-day chart. Source: TradingView

The three-day chart for Ether is with a vertical rally in the past weeks, reaching several important levels. In this case, the Fibonacci extension tool is helpful in determining the next potential top.

Often times, this indicator is used to determine different top structures in price discovery, but it can also be used to measure the likely strength of the next impulse movement.

In this case, the recent peak of the momentum movement was $ 470. The current low was $ 90 in March 2020. Based on that information, the Fibonacci 1,618 level was found at $ 750, while the 2,618 Fibonacci extension was $ 1,150. The latter also coalesces with the highest region of all time, in which Ether is currently located.

The next higher lowest puts $ 2,700 in play

ETH / USD 1 week chart. Source: TradingView

The weekly chart must be placed on the logarithmic scale to make this analysis. However, if the Ether chart tops out in the near future (it could also be after rallying towards $ 1,500 and a new record high), the same Fibonacci extension could be pulled on the recent momentum move.