Ethereum may rise against Bitcoin before the end of the year

Ethereum’s native token, Ethereum (ETH), is expected to rise sharply against Bitcoin (BTC) by the end of the year, driven by the bullish reversal pattern on its weekly chart. ETH/BTC pairs have been in an inverted head and shoulders top (IH&S) pattern since early September, characterized by three valleys, deepest in the middle, below the common neckline resistance level of 0.0420 BTC. The technical indicator shows that breaking through the neckline could push ETH/BTC to about 0.066 BTC, up 75% from current levels. Further bullish indicators include the Ethereum 20-week Index Moving Average (EMA) and the 50-week EMA are about to form a golden cross. Historically, a similar cross in July 2020 caused the ETH/BTC exchange rate to soar 250% after a brief overbought correction. This time, the decline to 0.033-0.045 BTC support (coinciding with 20-week and 50-week EMA) may become a catalyst for the rebound, strengthening IH&S's breakthrough expectations. However, ETH/BTC faces huge resistance levels before confirming a full break. The first major resistance level is the 200-week EMA near 0.045 BTC, which has been hindering the uptrend over the past two years. Apart from that, there is a more insurmountable obstacle: a long-term downward trend line that has defined the peak of Ethereum against Bitcoin since 2017. If the ETH/BTC closes above the 200-week EMA, this trend line may be challenged, which is currently in the 0.050-0.055 BTC range. Despite these resistances, Ethereum still has 15%-30% growth potential this year compared to Bitcoin. It should be noted that this article does not provide investment advice or recommendations. All investment and trading activities involve risks and readers are advised to study it themselves before making any decisions.