Ethereum is showing promising signs for ether (ETH) as its price chart mirrors a breakout pattern that signaled bitcoin’s (BTC) historic rally just weeks ago.

The three-line break chart for ether—a technical analysis method that smooths out erratic price moves—indicates the end of an eight-month downward trend. This reversal suggests a continuation of the bullish momentum that began in October 2023 near the $1,500 level.

Such patterns often act as a catalyst, drawing in fresh buyers while pushing bearish traders to unwind their positions, creating a positive feedback loop for price gains.

Bitcoin followed a similar trajectory in mid-October, breaking out of consolidation and climbing over 45% to exceed $96,000, data from TradingView and CoinDesk show.

Despite the technical setup, market fundamentals remain crucial. Ethereum network metrics have been equally supportive, with increased activity from layer-2 protocols burning more ETH and reducing supply, coupled with a surge in institutional interest as evidenced by record inflows into U.S. spot ether ETFs.