Ethereum’s native token, Ether (ETH), may increase 75% versus Bitcoin (BTC) by New Year’s, according to a maturing bullish reversal setup on its weekly chart.
Multiple signals hint at higher ETH prices
The ETH/BTC pair has been forming what appears to be an inverse-head-and-shoulders (IH&S) pattern since early September.
That is confirmed by the formation of three troughs, the deepest one in the middle, under a common neckline resistance at 0.0420 BTC.
Technically, an IH&S setup resolves after the price breaks above the neckline and rises by as much as the pattern’s maximum height.
Applying this technical rule to ETH/BTC’s chart brings its upside target for the year’s end to around 0.066 BTC, up about 75% from current rates.
Further bullish signals come from the imminent formation of a golden cross between Ethereum’s 20-week exponential moving average (20-week EMA; the green wave) and its 50-week EMA (the red wave).
A similar crossover in July 2020 preceded a 250% boom in ETH/BTC rates, albeit after undergoing a minor overbought correction first.
This time, a dip into the 0.033–0.045 BTC support zone — aligning with 20- and 50-week EMA — could serve as a springboard for a similar rebound, ultimately confirming the IH&S breakout scenario.
Major ETH/BTC resistances to watch
ETH/BTC faces several major hurdles before confirming a full breakout. The first is the 200-week EMA (blue line) near 0.045 BTC, a level that has repeatedly rejected upside attempts over the past two years.
Beyond that lies an even more substantial barrier: a long-term downward trendline that has marked Ether’s tops against Bitcoin since 2017.
The pair would likely make a run at this trendline, which currently sits in the 0.050–0.055 BTC zone, if ETH/BTC can close above the 200-week EMA.
Related: Bitcoin, Ether could make ‘monster move’ in next 3 months: Tom Lee
In either case, Ether still has 15%-30% growth potential compared with 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.
