The IH&S pattern is characterized by the formation of a triple bottom below the general resistance of the neckline. These formations are the middle (head) trough, deeper than the other two (shoulder) troughs, of approximately equal length.
If the IH&S pattern resolves when the price breaks through the neckline resistance after forming the right shoulder, then the price will rise to the maximum distance between the lowest point of the head and the neckline resistance. To put it more simply, Ethereum’s growth from 2019 to 2021 follows this pattern. During that period, it competed with Bitcoin for the best-developed cryptocurrency.
Will Ethereum and Bitcoin Change This Summer After Ether ETF Approved?
On Monday, the ETH/BTC pair reversed course as an initial bottom appeared. To initiate this spike, it will next need to reach the popular neckline resistance at around 0.061 BTC.
In doing this, Ethereum will be active and will need to retest the neckline before initiating a breakout. This breakthrough could see ETH explode to new highs in the coming months. You can see these patterns forming above price chart of Ethereum.
Following the latest approvals of a spot Ethereum ETF, the Ether community remains as optimistic as ever. News that the asset is on its way towards public trading has fueled the fight against Bitcoin. While BTC remains the largest cryptocurrency by market capitalization, Ethereum is always behind in terms of trading volume.
Many bulls expect Ether to reach an all-time high next month, shortly after the SEC fully approves ETFs. Once trading begins, the asset will likely see a boom similar to Bitcoin in January 2024.
See more: Hashdex files Bitcoin and Ethereum ETF applications with the SEC
