Ethereum is showing signs of a major bullish reversal against Bitcoin, with a classic inverse head-and-shoulders pattern forming on the ETH/BTC weekly chart. Technical analysis suggests that a decisive breakout above the neckline resistance at 0.042 BTC could trigger a rally of approximately 95%, targeting the 0.066 BTC level.
This setup draws a direct parallel to a similar pattern that preceded Ethereum's strong performance between 2019 and 2021. Market analyst Michael van de Poppe has noted that ETH/BTC likely bottomed in April 2025, and the pair has been forming constructive higher lows since, aligning with the development of the pattern's right shoulder.
However, the bullish outlook faces a near-term threat. A bear pennant formation on the three-day chart warns of potential downside, with a breakdown possibly sending ETH/BTC toward the 0.024–0.025 BTC range, which would invalidate the reversal thesis.
Fundamentally, Ethereum's network strength remains robust despite its price consolidation. Stablecoin balances on Ethereum surged by over 65% in 2025, reaching a record high of roughly $160–170 billion. Furthermore, stablecoin transfer volume on the network hit a new all-time high, crossing $8 trillion in Q4 2025, underscoring Ethereum's dominant role as a settlement layer.
