Ethereum shows a classic bullish pattern in its Bitcoin pair, hinting at 50% upside

The formation of a bullish trading pattern suggests that the ETH/BTC pair may be about to reverse the trend. Market analysis

Ethereum's native token, Ether (ETH), appears poised for a major price rally against its main rival, Bitcoin (BTC), in the days leading up to the start of 2023. Ether has a 61% chance of breaking out against Bitcoin

Bullish indices mostly emerge from a classic technical pattern dubbed a “cup and handle” pattern. It forms when price undergoes a U-shaped rally (cut) followed by a slight downward move (handle) – while maintaining a common resistance level (neckline).

Traditional analysts view the cut and handle as a bullish setup, with veteran Tom Bulkowski noting that the pattern hits its all-time 61% profit target. Theoretically, the profit target of a cup and handle model is measured by adding the distance from its neckline to the lowest point at the neckline.

The Ether-to-Bitcoin (or ETH/BTC) ratio, a widely followed pairing, has halfway painted a similar pattern. The pair is now waiting for a break above its neckline resistance level of around 0.079 BTC, as shown in the chart below.

ETH / Weekly BTC price chart with a cup and a handle. Source: TradingView

As a result, a decisive break above the 0.079 BTC goblet neck and handle could push the price of Ether towards 0.123 BTC, or more than 50%, in early 2023.

ETH/BTC Weekly Price Chart with Cut - and manage the configuration of the breakout. Source: TradingView

Time to get bullish on ETH?

The strong intermediate fundamentals of Ether compared to Bitcoin further improve its possibility of experiencing a price increase of 50% in the future.

For starters, Ether's annual supply rate dropped drastically in October, in part due to a fee consumption mechanism called EIP-1559 that removes a certain amount...