The Ethereum price is currently trading near a historical technical level that has previously marked significant market bottoms. Analysts suggest that this behavior signals a massive buying opportunity before a possible rally towards 5,000 dollars. A recent report highlights the similarity with previous bullish cycles.
On the other hand, the ETH/USD pair experienced a significant correction to multi-month lows, touching $2,621 recently. This drop has placed the quotation very close to the realized price of whales holding more than 100,000 ETH. This indicator represents the average price paid by the largest holders currently of the digital asset. Likewise, historical data reveals that only on four occasions during the last five years has this zone been touched. In each previous instance, the market responded with a strong recovery.
Furthermore, weekly technical charts are drawing a V-shaped recovery pattern that excites traders. Bulls are fighting to maintain value above the 50-week simple moving average. Overcoming the 3,300 dollar barrier is crucial to validate the trend and complete the technical formation. If this move is achieved, the immediate target would be situated at the neckline near 4,955 dollars.
Could the historical 260 percent rally observed previously be repeated?
It is fundamental to remember that in April, when the asset bounced from this same support level, it initiated a massive climb. The Ethereum price recorded a 260 percent increase after touching the realized price of whales. This precedent suggests that the current structure could trigger a similar movement in the next cycle. Additionally, patterns like the falling wedge reinforce the probability of an imminent bullish breakout.
On another note, institutional demand and flows into spot ETFs play a determining role in this equation. Analysts like Quentin Francois have described the current situation as a mandatory historical buying opportunity. Ethereum company treasuries are expected to increase their accumulation taking advantage of current prices. The combination of technical and fundamental factors creates a favorable scenario for sustained growth.
What technical levels will confirm the start of the bull run?
Long-term projections place the asset on an upward trajectory towards the year 2026. The formation of an inverse head-and-shoulders pattern against Bitcoin points to outperformance. A potential rally of 80 percent could take the value above 5,800 dollars. However, short-term volatility remains a risk that must be monitored closely.
Finally, the market’s ability to hold current supports will define the trend for the coming weeks. If history repeats itself, we are facing the prelude to a new parabolic cycle for leading cryptocurrencies. Smart investors are watching for the breakout of key resistances to increase their strategic exposure in the market. The general consensus points to the worst of the correction already being behind us.
