The native token of Ethereum, known as Ether (ETH), is expected to see a significant increase of over 50% compared to its main competitor, Bitcoin (BTC), in the near future. This projection is based on a technical pattern called 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 typically consists of three troughs forming below a common resistance neckline, with the middle trough (head) being deeper than the other two troughs (shoulders) which are of similar length.
Ideally, the IH&S pattern resolves when the price breaks above the neckline resistance after the formation of the right shoulder. This breakout could lead to a substantial increase in price, potentially reaching levels around $0.084 by the end of the year.
Analyst Wolf believes that an IH&S breakout scenario is likely in the coming months, drawing parallels to a similar breakout pattern seen in the 2019-2021 period which resulted in a 140% price surge in April 2021.
Additionally, the historical behavior of ETH/BTC following Bitcoin halving events provides further support for a bullish outlook. After the third Bitcoin halving in May 2020, the pair surged over 330%, and after the second halving in July 2016, it rallied over 900%. Currently, ETH/BTC is consolidating sideways following the fourth Bitcoin halving in April 2024.
The launch of spot Ether exchange-traded funds (ETF) may also contribute to the positive technical outlook for ETH/BTC. These ETFs are expected to be introduced by July 2, according to Bloomberg analysts.
It is important to note that this article does not provide investment advice and readers should conduct their own research before making any financial decisions.