Ethereum’s native cryptocurrency, Ether (ETH), is poised to surge by more than 50% compared to its major competitor, Bitcoin (BTC), in the near future, as indicated by a technical pattern known as the inverse-head-and-shoulders (IH&S).
The ETH/BTC breakout setup is reminiscent of the 140% surge seen in 2021. The IH&S pattern involves the formation of three troughs below a shared neckline resistance, with the middle trough (head) being deeper than the other two (shoulders), which are approximately equal in length.
In an ideal scenario, the IH&S pattern resolves when the price breaks above the neckline resistance after the formation of the right shoulder, resulting in a price increase equal to the distance between the head’s lowest point and the neckline resistance.
As of June 17, the ETH/BTC pair has shown signs of forming the head of the IH&S pattern, indicating a potential run-up towards the neckline resistance level around 0.061 BTC.
Following this, there may be a slight pullback before a retest of the neckline to complete the IH&S pattern formation. A successful breakout above the neckline, accompanied by increased trading volumes, could propel ETH/BTC to a target of around $0.084 by the end of the year, representing a gain of more than 50% from current levels.
Analyst Wolf predicts a breakout scenario for the IH&S pattern in the coming months based on similarities with a significant breakout pattern from the 2019-2021 period, which led to a 140% price surge in April 2021.
Additionally, historical post-Bitcoin halving price behavior suggests a bullish outlook for ETH/BTC in 2024. Following previous Bitcoin halvings, the pair saw significant surges within large triangle patterns, indicating the potential for a rally towards 0.062 BTC, up by approximately 20% from current levels.
The launch of spot Ether exchange-traded funds (ETF) by July 2, as suggested by Bloomberg analysts, could further fuel the bullish scenarios discussed above.
It is important to note that this article does not offer investment advice. All investment decisions involve risks, and readers are advised to conduct their own research before making any decisions.