Ethereum Price Surge: Could ETH Reach $5,000 Again?

Ethereum price rallied 260% the last time this happened: Can ETH reach $5K?

Summary:
Ethereum's price has recently approached a key level that historically indicates significant buying opportunities, hinting at the possibility of a rally towards $5,000. Analysts have identified patterns that suggest a striking recovery may be in play for ETH.

Key Takeaways:

Ethereum’s price has aligned closely with its realized price, a historical buying signal associated with strong price increases.
Classic recovery patterns, including V-shaped recoveries and falling wedges, indicating targets around $5,000 for ETH.
Increased demand and favorable market conditions may propel ETH towards significant price milestones.

Ethereum's Potential for a Major Rally

The ETH/USD trading pair recently witnessed a dramatic decline of 45%, plummeting to recent lows of $2,621 on November 21, down from a previous peak of $4,758 recorded on October 7. This drop brought the price near the realized price of major holders—commonly referred to as "whales"—with over 100,000 ETH, depicted in the chart below.

The realized price is the average cost paid by these holders to acquire their Ether, an essential metric for understanding price movements.

Related:__Ethereum's transaction fees drop significantly: Is ETH's value at risk?

According to CryptoQuant analyst Onchain in their most recent Quicktake analysis, “ETH has traded close to the realized price of whales with at least 100k ETH only four times in the past five years.” The analyst noted that in April, ETH rebounded off this level, leading to a remarkable rally of 260%, reaching its all-time high of $5,000.

Realized price of whales holding over 100K ETH. Source: CryptoQuant

Analyst Quentin Francois recently shared on social media: “$ETH is currently trading at the realized price of the largest holders.” Following a rebound from this trendline on November 22, the price of Ether rose to $3,238 on Friday, marking a 23.5% increase.

If patterns from the past are any indication, ETH may be on track for a price surge up to $5,000, spurred by renewed interest from corporate treasury investments and the return of spot ETF inflows.

Technical Analysis Suggests a Path to $5,000 for Ether

Analyzing Ether’s technical charts reveals the formation of a V-shaped recovery on the weekly timeframe, as illustrated below. ETH is currently re-testing the 50-week simple moving average (SMA) at approximately $3,300. For bulls to increase the likelihood of a price ascent to the neckline at $4,955, they must push the price above this SMA level.

Successful movement beyond this point would indicate a potential increase of 53% from the current price.

ETH/USD weekly chart. Source: Cointelegraph/TradingView

Many analysts are optimistic about ETH’s prospects, predicting a rise to $5,000 in 2026. Satoshi Flipper has indicated that a falling wedge formation could lead to a substantial breakout for the cryptocurrency.

ETH/USD daily chart. Source: Satoshi Flipper

In a previous report by Cointelegraph, analysis of Ether's inverse head-and-shoulders (IH&S) pattern against Bitcoin suggested the potential for an 80% increase in 2026, which could elevate ETH's price beyond $5,800.

In summary, as Ethereum approaches critical price levels, historical patterns indicate the potential for significant price increases, providing a compelling outlook for investors and traders interested in this dynamic cryptocurrency.