A bear pennant breakdown toward 0.024-0.025 BTC would negate the reversal setup.
Ethereum’s native token, Ether (ETH), could rally by over 95% versus Bitcoin (BTC), according to a textbook bullish reversal pattern forming on the ETH/BTC chart.
As of Monday, Ether appeared to be carving out the right shoulder of a developing inverse head-and-shoulders (IH&S) pattern on the ETH/BTC chart.
This stage typically marks the penultimate phase of a bullish reversal, with confirmation arriving once the price breaks decisively above the neckline resistance.
Once confirmed, the pattern’s upside target is typically calculated by measuring the distance between the head’s low and the neckline, suggesting room for a strong rally after a successful breakout.
ETH/BTC could rise toward 0.066 BTC if it breaks decisively above the neckline resistance at around 0.042 BTC. That amounted to approximately 95% gains compared to the current price levels.
A similar inverse head-and-shoulders structure played out on the ETH/BTC chart in 2019-2021, following a prolonged period of Ether underperformance. That setup resolved with a 95% breakout above its neckline.
Analyst Michael van de Poppe shared a similar outlook for ETH/BTC over the weekend, saying that the pair had already bottomed out in April 2025 and was due for further gains in 2026.
The bullish ETH/BTC reversal thesis would be invalidated if the pair fails to continue forming the right shoulder and instead breaks lower from its current consolidation.
On shorter-time frame charts, ETH/BTC appears to be forming a bear pennant, a pattern that typically signals trend continuation to the downside after a sharp drop.
A confirmed breakdown from this structure would likely drag the pair toward its pennant target near 0.024-0.025 BTC.
Related: Ethereum sentiment mirrors levels seen before ‘major run’: Santiment
Such a move would prevent a rally toward the neckline, invalidate the inverse head-and-shoulders setup, and signal that Ether’s relative downtrend against Bitcoin remains intact.
