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.
