Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Ether (ETH), the native token of the Ethereum blockchain, could see its price surge by as much as 75% against Bitcoin (BTC) by the end of the year, according to a recent technical analysis of its weekly chart. This optimistic forecast is based on a maturing bullish reversal setup, which includes an inverse-head-and-shoulders (IH&S) pattern and an impending golden cross indicator.
Technical Indicators Point to Upside
The ETH/BTC trading pair has been forming what analysts describe as an inverse-head-and-shoulders pattern since early September. This pattern is characterized by three troughs, with the middle one being the deepest, all forming beneath a common neckline resistance level at 0.0420 BTC. If the price successfully breaks above this neckline, the technical target derived from the pattern’s maximum height suggests a potential rise to approximately 0.066 BTC by year-end.
Further bolstering the bullish sentiment is the anticipated formation of a golden cross between Ethereum’s 20-week exponential moving average (EMA) and its 50-week EMA. A similar crossover in July 2020 preceded a significant 250% rally in ETH/BTC rates. Analysts suggest a potential dip into the 0.033–0.045 BTC support zone, aligning with these EMAs, could act as a springboard for a rebound, ultimately confirming the IH&S breakout scenario.
Key Resistance Levels Remain
Despite these bullish signals, Ether faces several significant hurdles that could impede a full breakout. The immediate challenge lies with the 200-week EMA, currently positioned near 0.045 BTC, a level that has historically rejected upward price movements over the past two years. Overcoming this barrier would be crucial for further gains.
Beyond the 200-week EMA, an even more formidable long-term downward trendline, which has capped Ether’s performance against Bitcoin since 2017, presents a substantial obstacle. This trendline currently sits in the 0.050–0.055 BTC range. A sustained close above the 200-week EMA would likely lead to a test of this long-standing resistance.
Outlook for Year-End
Even with the existing resistance levels, Ether is still projected to have a growth potential of 15%-30% against Bitcoin by the end of the year. The combination of technical patterns and moving average crossovers indicates a strong underlying bullish momentum, though key price levels will need to be overcome to realize the most ambitious targets.