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Ethereum is showing signs of a major bullish reversal pattern against Bitcoin. A textbook inverse head-and-shoulders structure on the ETH/BTC weekly chart points to a possible 95% rally, targeting 0.066 BTC—if the price breaks above key resistance at 0.042 BTC. A similar setup preceded Ether’s strong breakout between 2019 and 2021. However, a breakdown from the current consolidation may challenge this outlook.

Inverse Head-and-Shoulders Pattern Suggests Reversal

Ethereum is forming a classic bullish reversal setup against Bitcoin. The ETH/BTC weekly chart shows an inverse head-and-shoulders pattern, often seen before major price uptrends. The neckline for this structure is around 0.042 BTC. A decisive breakout above this level could push ETH/BTC toward 0.066 BTC, a 95% increase from current levels.

This pattern has historical relevance. Between 2019 and 2021, Ethereum formed a similar structure that resulted in a near-identical percentage gain. The current price movement appears to be developing the right shoulder, which is commonly the final stage before a breakout.

Traders often use the distance between the head’s lowest point and the neckline to estimate the target. In this case, the projected move suggests a potential rally toward the 0.066 BTC level.

Analysts Refer to Past Trends for Validation

Technical analysts have pointed out the similarities between the current ETH/BTC setup and the 2019–2021 rally. Market analyst Michael van de Poppe mentioned that ETH/BTC likely bottomed in April 2025. He suggested the pair may continue gaining strength in 2026.

The ETH/BTC pair has been consolidating since that bottom, which aligns with the typical formation phase of the inverse head-and-shoulders pattern. The 

 remains a key level to watch. If price breaks above it with volume, it would be considered confirmation of the pattern.

ETH/BTC weekly chart. Source: TradingView

This setup is gaining attention due to Ethereum’s past tendency to outperform Bitcoin during recovery phases. The weekly chart supports the case for a major move if conditions align.

Bear Pennant Structure Threatens Bullish Setup

While the long-term pattern is bullish, short-term charts tell a different story. On the three-day ETH/BTC chart, a bear pennant has formed. This pattern often leads to further downside after consolidation periods.

If ETH/BTC breaks down from this structure, the projected 

 lies between 0.024 BTC and 0.025 BTC. This would invalidate the bullish reversal setup and continue the pair’s relative underperformance.

Traders are closely watching this zone to assess whether ETH/BTC maintains its structure or breaks lower. A move below the pennant’s support could signal more weakness ahead.

The current consolidation phase is critical. Holding above the pattern support and pushing toward the neckline could preserve the bullish structure. Conversely, breaking down from the pennant would delay any potential breakout.

Neckline Resistance Key to Further Upside

The neckline around 0.042 BTC is the most critical level for ETH/BTC at this point. A decisive move above this level, especially with strong volume, may act as confirmation of the bullish reversal pattern.

Volume confirmation would add weight to the breakout, reducing the chance of a false move. Market participants are likely to monitor this level closely in the coming weeks.

A clean breakout could mirror the 2019–2021 move, during which ETH/BTC surged following a similar chart structure. Until that breakout occurs, the market remains cautious amid the current consolidation.

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