The ETH/BTC trading pair appears to be forming a bullish reversal pattern, similar to the one from 2019–2021, which led to a 140% price gain for Ether against Bitcoin. If confirmed, this technical setup might propel the $ETH rate by over 50% against Bitcoin, driven by the upcoming launch of ETH ETFs against the news of the SEC dropping its investigation against "Ethereum 2.0."

(Wolf on X)

The pattern mentioned is an implied inverse head-and-shoulders pattern on a weekly chart. The price has supposedly finished the 'head' part and is now expected to form the right 'shoulder,' or the first higher low after the technical downtrend. The head-and-shoulders pattern is considered confirmed when the price breaks the 'neckline'—in the case of inverse H&S, a break to a first higher high after forming a 'right shoulder' higher low.

(Source: Cointelegraph)

Based on classic chart pattern rules, a successful breakout above the neckline, accompanied by a rise in trading volumes, could push the ETH/BTC upside target to around $0.084, up over 50% from the current price levels. However, this is just a 'classic' target for this particular pattern and does not necessarily mean the end of market momentum.

The Cointelegraph chartists also suggest, based on historical post-Bitcoin halving price behavior, that a Bitcoin halving fractal might boost ETH/BTC's chances. For example, the pair rallied over 900% after the second Bitcoin halving in July 2016 and over 330% following the third Bitcoin halving in May 2020 while staying within a huge macro triangle pattern.

(Source: Cointelegraph)

Interestingly, the upside target aligns with the inverse head-and-shoulders 'neckline' resistance mentioned above. Thus, fluctuating inside the triangle range will likely enable ETH/BTC to complete this formation, leading to a meaningful macro breakout if the pattern unfolds as intended.

From a fundamental perspective, the launch of spot Ether exchange-traded funds (ETFs) — expected by July 2, according to Bloomberg analysts — may be the catalyst for the bullish scenarios discussed. Additionally, the news that the SEC is dropping its investigation into "Ethereum 2.0" is a significant positive, removing this source of headwind for potential market momentum.

(Consensys on X)

Tactical trading is hard. Risk management and position sizing are key. Without proper risk management and position sizing, you will suck at trading on a distance.

MetaTalks disclaims responsibility for any investment advice that may be contained in this article. All judgments expressed are solely the personal opinions of the author and the respondents. Any actions related to investing and trading in crypto markets involve the risk of losing funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.