The ETH/BTC trading pair is forming a classic bullish reversal pattern similar to the one from 2019-2021, which led to 140% price gains for Ethereum.
Ethereum’s native token, Ether (ETH), will likely explode by over 50% versus its top-ranking rival, Bitcoin (BTC), in the coming months, according to a technical setup called the inverse-head-and-shoulders (IH&S).
Notably, an IH&S pattern is characterized by the formation of three troughs below a common neckline resistance, such that the middle trough (head) comes to be deeper than the other two troughs (shoulders), which are roughly of the same length.
In a “perfect” scenario, an IH&S pattern resolves when the price breaks above the neckline resistance after the formation of the right shoulder. In doing so, the price rises by as much as the maximum distance between the head’s lowest point and the neckline resistance.