Ethereum could climb to a new all-time high price above $5,000 in 2026, according to crypto analyst Chris MacDonald, who argues that recent technological upgrades and long-term institutional adoption may be undervalued at current prices.
At the time of reporting, Ethereum was trading at approximately $2,972, down about 1% over the past month.
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Bullish Ethereum Price Outlook
MacDonald said Ethereum’s long-term investment case for prices above $5,000 has been materially strengthened by a series of protocol upgrades.
“Recent technological upgrades have changed the game for Ethereum investors and users,” MacDonald said, pointing to the Merge upgrade, which transitioned the network to a proof-of-stake model.
He added that the move allowed Ethereum to compete for staking market share while significantly improving its long-term growth and stability profile.
According to MacDonald, subsequent upgrades have further reinforced Ethereum’s appeal to both developers and institutional investors.
How Ethereum Could Grow
Despite increasing competition from alternative blockchains, he said many market participants continue to view Ethereum as likely to retain its position as the second-largest digital asset by market capitalization.
“Whether Ethereum ultimately challenges Bitcoin for the top spot remains an open question,” MacDonald said.
He added: “But there are very strong reasons why Ethereum bulls may continue to see this token as undervalued at around $3,100.”
MacDonald pointed to Ethereum’s fundamentals, including transaction volume, active wallet addresses, and total value locked (TVL), which have shown modest but meaningful growth.
“If these upgrades lead to meaningful institutional adoption in targeted growth areas, there’s substantial room for long-term expansion,” he said.
Bullish Outlooks Grow
An even more bullish outlook came from Tom Lee earlier this month, predicting that Ethereum could reach $62,000 and eventually trade at 25% of Bitcoin’s value.
The call was made during Binance Blockchain Week, where Lee argued that Ethereum would continue to transform finance until it was the backbone of society.
“In 1971, the dollar was removed from the gold standard, prompting Wall Street to develop financial products to ensure its continued status as the reserve currency,” he said, stating that Ethereum was having its own 1971 moment.
Technical Warning Signs
Not all analysts share the bullish outlook.
Victor Olanrewaju, an analyst at CCN, said Ethereum remains vulnerable to further downside pressure in the near term.
“Despite the uncertainty surrounding Bitcoin’s recent on-chain movements, Ethereum’s price still appears exposed to additional downside risk,” Olanrewaju said.
One key concern, he noted, is rising exchange reserves.
“When exchange reserves increase, it usually suggests more coins are being positioned for liquidity,” Olanrewaju said.
“Historically, sustained increases in reserves tend to correlate with price weakness.”
Data from CryptoQuant shows Ethereum’s exchange reserves have risen to their highest level in more than a month.
If the trend continues, Olanrewaju said ETH could decline toward the $2,500 level.
