Will Ethereum continue to rally against Bitcoin? ETH Price Technical Data Hints at 60% Gains Ahead

Ether could enter the breakout phase of the pattern in the days leading up to the highly anticipated meltdown.

Market analysis

Ethereum's native Ether (ETH) token shows the potential for significant gains against Bitcoin (BTC), with the ETH/BTC pair approaching yearly highs.

Ether paints a classic bullish reversal pattern

Bullish indices come from a classic technical pattern called the reverse head and shoulders, which develops when price forms three lows below a common support level called the neckline. The middle hollow, or head, is deeper than the other two, called the shoulders.

An inverse head and shoulders pattern resolves after price breaks above the neckline while accompanying an increase in trading volume. As a general rule of technical analysis, its profit target is at a length equal to the maximum distance from the lowest point of the head to the neckline.

So far, Ether has painted a similar pattern, and it is now awaiting a breakout above the neckline, as shown in the chart below.

ETH/BTC weekly price chart with " reverse head and shoulders pattern.Source: TradingView

If ETH price decisively climbs above the neckline, the token's upside target Ethereum in 2022 will be around 0.136 BTC, up around 60% from current price levels.

Merger Enthusiasm Boosts ETH/BTC Pair

The watershed moment could precede Ethereum's move from proof-of-work (PoW) to proof-of-stake (PoS).

Although the merger is being touted by developers as a less energy-intensive alternative to PoW, the update could also