The price of Ethereum’s native token, Ether (ETH), is predicted to surge by more than 50% compared to Bitcoin (BTC) in the near future, thanks to a technical pattern known as the inverse-head-and-shoulders (IH&S).
The IH&S setup for ETH/BTC is reminiscent of the 140% surge seen in 2021. This pattern is characterized by three troughs forming below a common neckline resistance, with the middle trough (head) being deeper than the two shoulders, which are similar in length.
In an ideal scenario, the IH&S pattern is confirmed when the price breaks above the neckline resistance after the formation of the right shoulder. This typically results in a significant price increase based on the distance between the head’s lowest point and the neckline resistance.
As of June 17, the ETH/BTC pair is currently consolidating after forming what appears to be the head of the IH&S pattern. The next move is expected to be a run-up towards the neckline resistance level at approximately 0.061 BTC.
Following this, there may be a minor pullback before a retest of the neckline, completing the IH&S pattern formation. A successful breakout above the neckline, accompanied by increased trading volumes, could push ETH/BTC’s price target to around $0.084 by the end of the year, representing a gain of more than 50% from current levels.
Analysts are optimistic about a potential breakout in the coming months, drawing parallels to a significant breakout pattern from 2019-2021 that resulted in a 140% price surge in April 2021.
Additionally, historical post-Bitcoin halving price behavior supports a bullish outlook for ETH/BTC in 2024. Following previous Bitcoin halvings, the pair experienced substantial gains within large triangle patterns, suggesting a potential rally towards 0.062 BTC, an increase of around 20% from current levels.
The launch of spot Ether exchange-traded funds (ETF) by July 2, as suggested by Bloomberg analysts, could further support the bullish technical scenarios discussed above.
It is important to note that this article does not provide investment advice. Readers are advised to conduct their own research before making any investment decisions, as all trading activities involve risks.