Ethereum’s Major Technical Breakthrough: Projected to Outperform Bitcoin by 75% Before Year’s End

Ethereum’s value in comparison with

is demonstrating the potential for a 75% rally by the end of the year, fueled by technical chart signals and market trends. The ETH/BTC pairing has achieved a breakout above ₿0.02600, forming an inverse head-and-shoulders (IH&S) pattern, which is a classic signal for a bullish reversal. This signal, supported by a sequence of higher lows and increased volume since April, points to a target of ₿0.066 before year’s end, amounting to a 75% gain from present prices. Experts connect this move to Ethereum’s strengthening position among alternative coins, as its dominance index has climbed to 10.05%—the highest since March 2020—suggesting that investors are reallocating capital away from Bitcoin.

Further confirmation comes from a breakout above a symmetrical triangle, with Ethereum’s price remaining above ₿0.02500 despite earlier setbacks, indicating solid upward momentum. This formation, which took weeks to develop, coincides with increased on-chain transactions and institutional investments, further reinforcing the optimistic outlook. Additionally, the MACD indicator reflects bullish momentum, with the MACD line overtaking the signal line and histogram bars growing, which strengthens the validity of the breakout.

The ETH/BTC rate is also creating a golden cross, as the 20-week exponential moving average (EMA) is set to move above the 50-week EMA. Historically, a similar crossover in July 2020 preceded a 250% rally in ETH/BTC, although there was a short-term pullback first. This cycle, a dip into the 0.033–0.045 BTC support range could spark a comparable rebound, further confirming the IH&S pattern. However, major resistance levels remain at the 200-week EMA (near 0.045 BTC) and a persistent downward trendline (0.050–0.055 BTC), both of which have previously limited upward movement.

Institutional activity and supply-side trends are strengthening Ethereum’s case for outperforming. Exchange balances have shifted negative, implying reduced selling pressure and a rise in long-term holdings. This matches the lowest ether reserves on exchanges in nine years alongside increasing staking activity, both of which have attracted significant capital into Ethereum’s network. Moreover,

ETF investments and whale accumulation have stabilized, which is a contrast to Bitcoin’s recent withdrawals and large holder sales in August.

Nonetheless, several risks remain. Fake breakouts, regulatory challenges, or unexpected inflation could disrupt the rally. The ETH/BTC pair could fall below ₿0.02500, which would negate the IH&S pattern. In addition, Ethereum’s network usage has plateaued since 2021, as Layer 2 solutions like

and Base have diverted mainnet transaction fees—potentially limiting long-term value growth.

The anticipated 75% rise depends on Ethereum holding its lead and maintaining institutional trust. While technical analysis and favorable macro conditions back the bullish scenario, investors should watch critical price levels and overall market sentiment closely. If the breakout holds, it could usher in a broader altcoin rally, with Ethereum at the forefront as the second-highest cryptocurrency by market value.