ETH to Gain 50% against BTC – Analysis

ETH to Gain 50% against BTC – Analysis

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is on the brink of a substantial rally against Bitcoin (BTC), gaining over 50% in the upcoming months, according to a fractal analysis. This bullish outlook is based on the chart’s inverse-head-and-shoulders (IH&S) formation, a classic bullish reversal setup.

The Inverse-Head-and-Shoulders Pattern

The IH&S pattern is recognized by the formation of three troughs below a common neckline resistance. The middle trough, or the “head,” is the deepest, while the other two troughs, known as the “shoulders,” are approximately equal in depth.

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Ideally, this pattern signals a bullish reversal once the price breaks above the neckline resistance. Currently, the ETH/BTC pair is forming the head of its IH&S pattern, and the successful completion of this formation could lead to a significant breakout.

At the time of writing, ETH/BTC is fluctuating around the head of the pattern, awaiting a decisive move toward the neckline resistance at approximately 0.061 BTC.

Potential Breakout and Target Levels

Once ETH/BTC breaks above the neckline resistance, the pattern suggests a price increase equivalent to the distance between the head’s lowest point and the neckline. This projection targets around 0.084 BTC, indicating a potential upside of more than 50% from current levels.

This anticipated breakout is not merely speculative; historical precedents provide a compelling basis for this projection. The IH&S pattern has been a reliable indicator of substantial bullish moves, most notably between 2019 and 2021, during which Ethereum gained 140% against Bitcoin following a similar pattern formation.

Historical Context and Bitcoin Halving Influence

The bullish sentiment for ETH/BTC is further bolstered by historical patterns associated with Bitcoin halving events. Significant price increases for BTC and ETH have historically happened after Bitcoin halvings.

After the third Bitcoin halving in May 2020, ETH/BTC surged by over 330%. Similarly, the second halving in July 2016 caused the pair to experience a rally of more than 900%. These historical trends suggest that ETH/BTC is poised for another substantial rally as it consolidates within a large triangle pattern.

Spot Ether ETFs and Market Sentiments

Meanwhile, the anticipated launch of spot Ether exchange-traded funds (ETFs) could be another significant catalyst for Ether’s bullish momentum. Analysts at Bloomberg suggest that spot Ether ETFs might be approved as early as July 2, potentially driving significant institutional investment into Ethereum.

The introduction of spot Ether ETFs would provide a more accessible and regulated investment vehicle for retail and institutional investors, boosting demand for Ether. This increased demand, combined with the bullish technical indicators, paints a promising picture for ETH/BTC in the coming months.

Memecoin Traders Succumb to Market Downturn

Meanwhile, the cryptocurrency market’s recent correction has spurred notable capitulation among memecoin traders, per blockchain tracking firm – Lookonchain. Accordingly, two significant traders have liquidated their substantial positions in Pepe (PEPE) and Beercoin (BEER).

After just over a month of holding, a PEPE whale liquidated his entire position of 114.7 billion tokens for 366.5 ETH, approximately $1.27 million. However, the move is a breakeven exit after the trader initially bought the tokens at $0.000011 in mid-May.

Despite PEPE’s price briefly surging to $0.000017 in late May, offering a potential profit of $670,000, the trader did not capitalize on that opportunity—currently, the token trades around the holder’s entry price point.

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Rudy Harris
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Rudy Harris

Rudy Harris, a dynamo in crypto journalism, intricately unpacks the multifaceted world of digital assets. Renowned for his analytical depth and clear exposition, Rudy's articles serve as an essential compass for those navigating the intricate corridors of blockchain and cryptocurrency, solidifying his stature as a trusted expert.

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