The Psychology Trap: Why Most Traders Miss the Biggest Moves as ETH/BTC Breaks Out

Most traders fall into a psychological trap that causes them to miss major moves, but the recent ETH/BTC breakout signals a warning to act now.

a chart shared by “Our Crypto Talk,” Ethereum has broken out against Bitcoin after a months-long consolidation. This has raised the possibility that a new altseason is beginning. The analysis warns that traders watching from the sidelines risk missing the next biggest move in crypto.

Notably, the ETH/BTC ratio broke above a consolidation range this week. After bottoming near 0.01800 in April, Ethereum steadily climbed and recently broke out of a long-held consolidation zone between 0.02400 and 0.02600 in what analysts describe as an accumulation phase.

Now, Ethereum appears to be gaining momentum, outperforming Bitcoin as it reclaims key resistance levels. At the time of the chart, ETH/BTC trades at approximately 0.03034, well into a highlighted green breakout band between 0.02800 and 0.03200.

Analysts identify the 0.03400 to 0.04200 range as the next potential target if momentum continues. The green projection arrow on the chart points to the possibility of continued gains in the ETH/BTC pair, which often precedes wider altcoin rallies.

The accompanying analysis from Our Crypto Talk highlighted a common psychological trap among market participants: waiting for the “perfect” entry.

According to the analyst, many traders missed recent rallies in assets like Solana, BNB, and SUI because they hesitated after the first breakout.

These assets have since reached or approached key resistance levels, $200 for SOL, an all-time high for BNB, and $4 for SUI. While these levels now appear as resistance, analysts believe they could soon be surpassed if altcoin momentum continues.

The ETH/BTC chart is often seen as a leading indicator of altseason. When Ethereum gains against Bitcoin, it typically signals growing risk appetite in the market. This shift often extends to mid- and small-cap altcoins as capital flows out of BTC and into higher-risk assets.

Despite Ethereum’s recent performance, it remains below its December 2024 highs. It currently trades at $3,633, a 1.2% decline in the past day, which has decreased its impressive monthly rally to 51%.