Ether (ETH), the native token of Ethereum, could see a 75% increase against Bitcoin (BTC) by the New Year, driven by a developing bullish reversal pattern on its weekly chart.
Numerous indicators suggest rising ETH prices
The ETH/BTC pair has been creating what seems to be an inverse-head-and-shoulders (IH&S) pattern since early September.
This is validated by the formation of three troughs, with the deepest one centrally located, below a shared neckline resistance at 0.0420 BTC.
Technically, an IH&S pattern is considered resolved when the price surpasses the neckline and rises by the maximum height of the pattern.
Applying this technical guideline to the ETH/BTC chart sets an upside target of approximately 0.066 BTC by year-end, reflecting a 75% increase from current levels.
Additional bullish signals stem from the upcoming formation of a golden cross between Ethereum’s 20-week exponential moving average (20-week EMA; the green wave) and the 50-week EMA (the red wave).
A similar crossover occurred in July 2020, leading to a 250% increase in ETH/BTC rates, albeit after a minor overbought correction.
This time, a drop into the 0.033–0.045 BTC support zone—correlating with the 20- and 50-week EMA—could launch a rebound, thereby confirming the IH&S breakout scenario.
Key ETH/BTC resistances to monitor
The ETH/BTC pair must overcome several significant challenges before a complete breakout can be confirmed. The initial hurdle is the 200-week EMA (blue line) near 0.045 BTC, a level that has consistently thwarted upward movements over the past two years.
Following this is a more formidable barrier: a long-term downward trendline that has defined Ethereum’s peaks against Bitcoin since 2017.
If ETH/BTC manages to close above the 200-week EMA, it is likely to make an attempt at this trendline, currently positioned in the 0.050–0.055 BTC range.
Related: Bitcoin, Ether could make ‘monster move’ in next 3 months: Tom Lee
In any event, Ether still holds a 15-30% growth potential compared to Bitcoin this year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
