- Ethereum’s ETH may see a 50% increase against Bitcoin, based on the inverse head-and-shoulders pattern analysis.
- Technical projections place ETH/BTC target at 0.084 by year-end if it breaks above the neckline resistance at 0.061 BTC.
Ethereum’s native token, Ether (ETH), is set for a potential 50% increase against Bitcoin (BTC) in the coming months, according to an analysis of the ETH/BTC trading pair. This analysis is based on a technical chart pattern known as the inverse head-and-shoulders (IH&S).
Technical Analysis of ETH/BTC
The IH&S pattern is identified by three troughs with the middle one being the deepest and the other two of similar depths but less than the middle. This pattern forms below a consistent neckline resistance level. For Ether, the formation of this pattern is an indicator that a significant price rise might be on the horizon, as mentioned in ETHNews.
As of June 17, the ETH/BTC pair fluctuated after seemingly forming the head of the IH&S pattern. The trajectory of this pattern suggests an impending upward movement towards the neckline resistance, which stands at around 0.061 BTC.
Should the pair successfully break out above this neckline with sufficient trading volume, the projected target would be around 0.084 BTC, marking over a 50% increase from its current levels.
Historical Context and Future Projections
Analyst Wolf pointed out that this setup resembles a similar IH&S pattern from 2019-2021, which resulted in a 140% surge in price after a decisive breakout in April 2021. Adding to this optimistic forecast is the historical performance following Bitcoin’s halvings.
For instance, ETH/BTC saw a 330% increase after the third Bitcoin halving in May 2020 and a substantial 900% rally post the second halving in July 2016.
Am I the only one who's seeing this pattern ? $ETHBTC pic.twitter.com/H0gWI8GDQ4
— Wolf 🐺 (@IamCryptoWolf) June 17, 2024
Currently, ETH/BTC is trading within a large triangle pattern since the fourth Bitcoin halving in April 2024. The price has been consolidating sideways, maintaining above the triangle’s lower trendline. A push towards the upper trendline at around 0.062 BTC is expected, indicating a potential 20% rise from present levels.
Potential Catalysts
The bullish outlook for ETH/BTC is further supported by potential catalysts in the broader cryptocurrency market. Notably, the anticipated approval and launch of spot Ether ETFs could act as a significant trigger for these technical scenarios to materialize. Bloomberg analysts have speculated that such ETFs could be introduced as early as July 2.
This confluence of technical patterns and potential market developments makes a compelling case for Ethereum’s near-term prospects against Bitcoin. While the technical analysis suggests a strong upward potential, market and upcoming developments will play crucial roles in determining the actual market movements.
