Ether (ETH) is trading near levels that have historically indicated market bottoms, with classic chart patterns hinting at a potential rise to $5,000.
Key takeaways:
The price of Ether is approaching its realized price, which has typically signaled buying opportunities leading to significant rallies.
V-shaped recovery and falling wedge patterns are appearing, aiming for a $5,000 ETH price.
Ether price set for a parabolic rally
The ETH/USD pair fell 45% to multi-month lows of $2,621 on Nov. 21 from a peak of $4,758 on Oct. 7.
This decline brought the price close to the realized price for whales holding over 100,000 ETH, as depicted in the chart below.
This reflects the average price paid by current holders of more than 100,000 ETH to acquire Ether.
Related: Ethereum network experiences 62% drop in fees: Is the ETH price at risk?
“In the last five years, ETH has traded very close to the realized price of whales holding at least 100,000 ETH only four times,” noted CryptoQuant analyst Onchain in a recent Quicktake analysis, adding:
“Two instances occurred during the 2022 bear market, and the other two happened this year.”
In April, ETH rebounded from this level, initiating a 260% rally to its current all-time high of $5,000.
“$ETH is now trading at the realized price of the largest holders,” commented analyst Quentin Francois in a recent X post, adding:
“This represents a historically favorable buying opportunity.”
Ether’s price increased from this trendline on Nov. 22, trading 23.5% higher at $3,238 on Friday.
If history holds, ETH could surge to $5,000, driven by heightened demand from Ethereum treasury companies and renewed spot ETF inflows.
Ether’s technical charts indicate a $5,000 ETH price
Technical analysis of Ether’s price reveals a V-shaped recovery pattern on the weekly chart, as shown below.
ETH is currently retesting the 50-week simple moving average (SMA) at $3,300. Buyers need to push the price above this level to increase the likelihood of a rise to the neckline at $4,955, completing the V-shaped pattern.
Such a move would mark a 53% gain from the current price.
Several analysts believe that ETH could reach $5,000 by 2026, with Satoshi Flipper asserting that a falling wedge pattern suggests a significant breakout for the altcoin.
“$4800 $ETH is nearer than many anticipate.”
As reported by Cointelegraph, Ether’s inverse head-and-shoulders (IH&S) formation against Bitcoin (BTC) indicates a potential 80% surge in 2026, translating to an ETH price exceeding $5,800.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
