Ethereum’s native token, Ether (ETH), is expected to see a significant surge of over 50% against its top-ranking rival, Bitcoin (BTC), in the coming months. This bullish prediction is based on a technical setup known as the inverse-head-and-shoulders (IH&S) pattern.
The IH&S pattern is characterized by the formation of three troughs below a common neckline resistance, with the middle trough (head) being deeper than the other two troughs (shoulders). In a “perfect” scenario, the price breaks above the neckline resistance after the formation of the right shoulder, resulting in a substantial price increase.
As of June 17, the ETH/BTC pair has formed what appears to be the head of its IH&S pattern and is currently awaiting an extended run-up towards the common neckline resistance level at around 0.061 BTC. Following this, the pair may experience a modest pullback and recovery to retest the neckline, completing the IH&S pattern formation.
If a successful breakout above the neckline occurs, accompanied by a rise in trading volumes, ETH/BTC’s upside target is projected to be around $0.084 by the end of the year, representing a more than 50% increase from current price levels.
Analyst Wolf anticipates a breakout scenario in the coming months, citing similarities with a previous IH&S breakout pattern from the 2019-2021 period that resulted in a 140% price surge following a decisive breakout in April 2021.
Additionally, ETH/BTC’s bullish outlook for 2024 is further supported by its historical post-Bitcoin halving price behavior. The pair has surged significantly following previous Bitcoin halving events, with the current consolidation phase potentially leading to a technical breakout if the IH&S pattern plays out as intended.
From a fundamental perspective, the potential launch of spot Ether exchange-traded funds (ETF) by July 2, as suggested by Bloomberg analysts, could trigger the bullish scenarios discussed above.
It is important to note that this article does not contain investment advice or recommendations, and readers are advised to conduct their own research before making any investment decisions. The analysis highlights the potential for Ethereum to outperform Bitcoin in the coming months, driven by technical patterns and market dynamics.