Ether (ETH) traded close to a level that has previously marked market bottoms, as classic chart patterns suggested a possible rally to $5,000.
Key takeaways:
Ethereum price traded closer to its realized price, historically a buying opportunity that has led to major rallies.
V-shaped recovery and falling wedge patterns emerge, targeting $5,000 ETH price.
Ether price poised for a parabolic rally
The ETH/USD pair dropped 45% to multimonth lows of $2,621 on Nov. 21 from a high of $4,758 reached on Oct. 7.
This drawdown saw the price drop close to the realized price of whales holding more than 100,000 ETH, as shown in the chart below.
This refers to the average price that all current holders of more than 100,000 ETH have paid to buy Ether.
Related: Ethereum network sees 62% drop in fees: Is ETH price at risk?
“Only four times in the last five years has ETH traded very close to the realized price of whales holding at least 100k ETH,” said CryptoQuant analyst Onchain in its latest Quicktake analysis, adding:
“Two occurred during the 2022 bear market, while the remaining two took place this year.”
In April, the ETH price bounced off this level, staging a 260% rally to its current all-time high of $5,000.
“$ETH is currently trading at realized price of the biggest holders,” said analyst Quentin Francois in a recent X post, adding:
“This is historically a buying opportunity.”
Ether’s price rebounded from this trendline on Nov. 22, and now trades 23.5% higher at $3,238 on Friday.
If history repeats itself, ETH could rally to as high as $5,000, fueled by increased demand from Ethereum treasury companies and the return of spot ETF inflows.
Ether’s technical charts target $5,000 ETH price
Ether’s price technicals are painting a V-shaped recovery chart pattern on the weekly chart, as shown below.
ETH is retesting the 50-week simple moving average (SMA) at $3,300. Bulls need to push the price above this level to increase the chances of the price rising to the neckline at $4,955 and completing the V-shaped pattern.
Such a move would represent a 53% increase from the current price.
Several analysts believe that ETH has the potential to rally to $5,000 in 2026, with Satoshi Flipper saying a falling wedge pattern projects a massive breakout for the altcoin.
“$4800 $ETH is closer than most think.”
As Cointelegraph reported, Ether’s inverse head-and-shoulders (IH&S) formation against Bitcoin (BTC) points to a potential 80% rally in 2026, translating to an ETH price above $5,800.
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