Ethereum’s Ether Predicted to Surge by Over 50% Against Bitcoin, Signals IH&S Pattern
Summary:
Ether (ETH), Ethereum's native cryptocurrency, is projected to surge by over 50% against Bitcoin (BTC), according to a technical pattern identified as inverse-head-and-shoulders (IH&S). The expected rise in the ETH/BTC pair aligns with a historic bullish performance after Bitcoin halvings and the imminent launch of Ether exchange-traded funds (ETFs). However, all investments carry risks, and individuals are advised to conduct independent research before making any decisions.
Evidence suggests that Ether (ETH), Ethereum's native cryptocurrency, is projected to surge by over 50% against its foremost competitor, Bitcoin (BTC) in the forthcoming months. This anticipated rise is based on a technical analysis pattern known as the inverse-head-and-shoulders (IH&S). Observers may recall similar instances of ETH/BTC's pattern echoing 2021's dramatic 140% escalation.
The IH&S model is defined by three lows beneath a recurrent resistance level, where the middle low (head) is more profound than the outside two (shoulders), which are approximately equal in depth. The ideal realization of an IH&S structure occurs when the price vaults over the resistance level post the right shoulder's creation, spurring a rise equal to the utmost distance from the head's valley point to the resistance level.
As of June 17, the ETH/BTC pair appears to be tottering after creating what looks like the IH&S pattern's head. Now, expectations are high for a run-up towards the consistent resistance level of about 0.061 BTC.
Once this happens, the pair may undergo a slight setback, followed by a revival, enabling the completion of the IH&S structure. If successful in breaching above the resistance level—and reinforced by a surge in trading volumes— ETH/BTC could reach a high of around $0.084 by year-end, marking a rise of over 50% from current pricing levels.
Analyst Wolf foresees an IH&S breakout in the coming months. It bears a striking resemblance to the substantial IH&S pattern breakout from 2019-2021, yielding a 140% price burst after a pronounced breakout in April 2021.
Supporting these predictions is ETH/BTC's historically bullish performance post-Bitcoin halving. For instance, the pair leaped over 330% post the third Bitcoin halving in May 2020, and soared by more than 900% after July 2016's second Bitcoin halving.
Since the fourth Bitcoin halving in April 2024, ETH/BTC has been in a lateral consolidation phase, keeping above its range's lower trendline while preparing for a surge towards the upper trendline at roughly 0.062 BTC, roughly 20% above present price points.
Fascinatingly, this upward target coincides with the IH&S pattern's resistance level mentioned earlier. Therefore, oscillation within the triangle range may facilitate the completion of the IH&S model for ETH/BTC, priming it for a potential breakout as anticipated.
From a fundamental standpoint, the imminent launch of Ether spot exchange-traded funds (ETF), potentially by July 2 according to Bloomberg analysts, could actuate these technically bullish possibilities.
Nonetheless, this article does not provide investment advice or endorsements. All investments and trading decisions entail risks, and readers are urged to conduct thorough research prior to making any conclusions.
Published At
6/17/2024 5:06:07 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.