Is the ETH/BTC weekly chart showing a bullish reversal? Ethereum has a 95% relative upside potential window.

In January 2026, the ETH/BTC trend is drawing significant attention from technical traders. From the weekly chart structure, Ethereum against Bitcoin is forming a classic inverse head and shoulders pattern, which is often regarded as an important signal of a medium- to long-term trend reversal. Overall, if the key resistance is effectively broken, Ethereum’s relative performance against Bitcoin may see a notable improvement.

Analyzing the chart structure, the neckline area of ETH/BTC is around 0.042 BTC, which is currently the most critical technical threshold. Once this level is broken with increased volume, based on the inverse head and shoulders measurement method, the potential target would be around 0.066 BTC, corresponding to approximately 95% of the theoretical upside. This target is derived from the vertical distance between the head’s low point and the neckline, a common approach in classical technical analysis.

It is worth noting that this pattern has historically brought significant market movements for Ethereum. Between 2019 and 2021, ETH/BTC exhibited a highly similar weekly structure, after which Ethereum significantly outperformed Bitcoin during a relatively strong phase. The current price action is viewed by some analysts as the formation of the right shoulder, which typically indicates the final consolidation phase before a trend reversal.

Technical analyst Michael van de Poppe pointed out that ETH/BTC may have completed a phase of bottoming around April 2025 and subsequently entered a sideways consolidation. This movement aligns closely with the formation process of the inverse head and shoulders pattern. He believes that if macro and market conditions cooperate, ETH/BTC has the technical potential to strengthen further in 2026.

From a market behavior perspective, since bottoming out, ETH/BTC has been fluctuating within a relatively narrow range, indicating that bullish and bearish forces are gradually balancing. Overall, this consolidation often serves as a preparatory phase before a trending move. However, it is important to note that if the price repeatedly encounters resistance at 0.042 BTC and volume cannot increase, the confirmation of the pattern will be delayed, and short-term volatility may continue.

In summary, the weekly structure of ETH/BTC provides a clear technical framework for Ethereum’s medium-term performance against Bitcoin. As the 2026 market develops, whether the neckline is broken will be a key point in determining if Ethereum enters a new cycle of relative strength.