Ether traded near a level that analysts say has historically marked major market bottoms.
The cryptocurrency fell to $2,621 on Nov. 21, a drop of 45% from its October high of $4,758.
This sharp decline brought ETH close to the realized price of wallets holding more than 100,000 ETH.
That metric represents the average cost basis for the largest Ether holders.
According to analysts, ETH has approached this level only four times in the past five years.
“Only four times in the last five years has ETH traded very close to the realized price of whales holding at least 100k ETH,” wrote CryptoQuant analyst Onchain.
“Two occurred during the 2022 bear market, while the remaining two took place this year.”
A similar move in April triggered a 260% rally toward ETH’s previous all-time high of $5,000.
Analysts Call the Current Price Zone a Buying Opportunity
Some market observers say ETH trading near whale cost basis has historically indicated strong upside potential.
“$ETH is currently trading at realized price of the biggest holders,” said analyst Quentin Francois.
“This is historically a buying opportunity.”
Following the bounce from its trendline on Nov. 22, Ether rose 23.5% to around $3,238.
If previous patterns play out, analysts suggest ETH could climb back toward $5,000.
This outlook is supported by anticipation of increased demand from Ethereum treasury companies.
It may also benefit from renewed inflows into spot Ether exchange-traded funds.
Technical Indicators Show a Potential V-Shaped Recovery
Technical charts show a V-shaped recovery forming on the weekly timeframe.
Ether has been retesting its 50-week simple moving average near $3,300.
A sustained break above this level could set the stage for a move toward the neckline around $4,955.
Such a move would represent a roughly 53% gain from current levels.
The V-shaped pattern is historically associated with strong momentum rebounds.
Analysts Predict a Move Toward $5,000 in 2026
Multiple analysts are projecting a longer-term rally that could push ETH near or above $5,000 by 2026.
Trader Satoshi Flipper highlighted a falling wedge pattern, often considered a bullish formation.
“$4800 $ETH is closer than most think,” the analyst said.
Daily charts appear to support this outlook.
Meanwhile, ETH’s performance relative to Bitcoin may also play a role.
An inverse head-and-shoulders pattern in the ETH/BTC pair suggests a potential 80% climb.
That projection would place ETH above $5,800.
