Ethereum is poised for a huge surge this year of up to 50% to rival Bitcoin, according to a new analysis of chain data. According to a technical setup called the inverse-head-and-shoulders (IH&S), Ether is expected to boom over the next few months, mimicking a similar bullish pattern to 2021 where it competed with BTC in terms of growth.
The IH&S pattern is characterized by the formation of three troughs below a common neckline resistance. These formations are the middle trough (head), which comes to be deeper than the other two troughs (shoulders), which are roughly of the same length.
If the IH&S pattern resolves when the price breaks above the neckline resistance after the formation of the right shoulder, the price rises by as much as the maximum distance between the head’s lowest point and the neckline resistance. In simpler terms, Ethereum’s growth between 2019 and 2021 followed this pattern. In that period, it competed with Bitcoin in terms of the best-growing cryptocurrency.
Also Read: Bloomberg Analysts Move Up Expected Ether ETF Launch to July 2
Ethereum And Bitcoin To Flip This Summer Following Ether ETF Approval?
On Monday, the ETH/BTC pair flipped as the head trough appeared. To begin this surge, it will next need to reach the common neckline resistance level at around 0.061 BTC. Upon doing this, Ethereum will be in business and will need to retest the neckline before a breakout commences. This breakout may see ETH boom to new highs in the coming months. You can see these patterns forming on Ethereum’s price chart.
Following the latest approvals of Spot Ethereum ETFs, the Ether community is as bullish as ever. The news of the asset being on its way toward public trading fuels its battle against Bitcoin. While BTC remains the biggest cryptocurrency by market cap, Ethereum has always been close behind in terms of trading volume. Many bullish price predictions expect Ether to reach all-time highs next month, as soon as the SEC fully approves ETFs. When trading commences, the asset will possibly see a similar boom to Bitcoin in January 2024.