ETH/BTC Inverted Head-and-Shoulders Pattern Signals Potential 95% Bullish Reversal

Source: CoinTribune Original Title: ETH/BTC Eyes Key Neckline For Trend Reversal Original Link: https://www.cointribune.com/en/eth-btc-eyes-key-neckline-for-trend-reversal/

A Familiar Chart Signal

Ether (ETH), the native asset of the Ethereum network, could experience a spectacular rise against Bitcoin if a bullish reversal scenario confirms on the ETH/BTC pair.

The ETH/BTC pair could climb 95% up to 0.066 BTC if it manages to break the key resistance of 0.042 BTC. In other words, a decisive breakout above this neckline could pave the way for a rally near 95% from current levels.

This scenario is taken seriously by analysts because it shows several similarities with a historical precedent that occurred between 2019 and 2021. At that time, a comparable setup led to a move of the same magnitude. Here are the main points noted:

• The neckline of the current model is identified around 0.042 BTC, a key technical threshold to cross
• The bullish potential would then be estimated at 0.066 BTC, if a confirmed breakout occurs
• This type of structure is often interpreted as a precursor signal for a lasting reversal, especially after a long period of underperformance

These technical indicators trigger investor interest, especially as the setup clearly recalls Ethereum’s successful rally in 2021 on the same pair. The conditions seem aligned for a bullish scenario, but it remains to be confirmed on a clear breakout of the resistance.

A Bearish Threat in Ambush?

However, a completely different scenario is emerging in parallel and could invalidate this bullish outlook. Indeed, on shorter time frames, the ETH/BTC pair shows a “bear pennant” structure, a pattern generally associated with a continuation of the bearish trend.

A confirmed breakout of this structure could likely push the pair towards the “bear pennant” target, situated around 0.024–0.025 BTC. In other words, a breakdown would completely cancel the bullish pattern and open the way for a significant decline of Ether against Bitcoin.

This divergence between long-term and short-term technical signals highlights the fragility of the current situation. If Ether fails to overcome the 0.042 BTC resistance, the chance for a reversal could fade. This would mark the continued relative dominance of Bitcoin over its main competitor and challenge the prospect of an imminent bullish cycle for Ethereum.

If the technical signal confirms, Ethereum could start a spectacular recovery against Bitcoin. Between chart hope and market caution, the coming weeks will be decisive for determining whether a new cycle is loading for Ethereum.