Ethereum (ETH) is poised for a significant surge against Bitcoin (BTC) in the coming months, potentially exceeding 50%, driven by a bullish technical setup known as the inverse-head-and-shoulders (IH&S) pattern. As of June 17, Ethereum is trading around $3,434, while Bitcoin hovers near $65,404.

The IH&S pattern is characterized by three troughs, with the middle trough (the head) deeper than the other two (the shoulders), all beneath a common neckline resistance. A breakout occurs when the price rises above this neckline after forming the right shoulder, typically leading to a price increase equivalent to the distance from the head’s lowest point to the neckline.

Currently, the ETH/BTC pair has formed what appears to be the head of the IH&S pattern and is consolidating before an anticipated run-up towards the neckline resistance around 0.061 BTC. Following this move, a minor pullback and subsequent recovery to retest the neckline could complete the pattern.

If Ethereum successfully breaks above the neckline with increased trading volumes, analysts anticipate a bullish target for ETH/BTC around 0.084 BTC by the end of the year, representing a more than 50% increase from current levels.

This bullish outlook is bolstered by historical precedent, particularly a similar IH&S breakout pattern observed during the 2019–2021 period, which resulted in a substantial 140% surge for Ethereum against Bitcoin following a decisive breakout in April 2021.

Furthermore, Ethereum's historical performance post-Bitcoin halvings adds to the optimism. Following the third Bitcoin halving in May 2020, ETH/BTC surged over 330%, and after the second halving in July 2016, it rallied over 900%. Both instances saw Ethereum consolidating within large triangle patterns before significant upward moves.

In the current scenario since the fourth Bitcoin halving in April 2024, ETH/BTC has been consolidating sideways above the lower trendline of its triangle pattern, eyeing a potential rally towards the upper trendline at approximately 0.062 BTC, marking a roughly 20% increase from current levels.

The upcoming launch of spot Ether exchange-traded funds (ETFs), anticipated as early as July 2 according to Bloomberg analysts, is expected to further catalyze Ethereum’s bullish momentum. This fundamental development aligns well with the technical breakout patterns being observed, reinforcing market expectations for Ethereum's robust performance against Bitcoin throughout 2024.