Crypto Expert Predicts Ethereum Price Hitting $5k as Technicals and Fundamentals Align

Key Insights

• A top crypto analyst believes that the Ethereum price may rebound to $5,000.
• Technical analysis, including an inverted H&S pattern points to a rebound.
• Top fundamentals, including transactions and fees have continued doing well this year.

Ethereum price was stuck at the crucial support level at $2,000 on Saturday, down from the all-time high of $4,950. It has now plunged for four consecutive weeks, the longest streak since late last year. Still, one popular analyst believes that the ETH price will eventually rebound to the key resistance level at $5,000 as fundamentals and technicals align.

Ethereum Price to Rebound to $5,000

DeFi Midas, a popular crypto analyst with nearly 100,000 subscribers on X, predicted that the Ethereum price will rebound and hit the key resistance level at $5,000 in the coming weeks or months.

He pointed to its long-term technicals, which he believes are highly supportive. The chart below shows that the coin initially surged and has now remained inside a range of between $1,000 and ~$4,000 in the last four years. He believes that this is a solid base that could lead to an explosive rally in the future.

The weekly timeframe chart shows that the Ethereum price has formed some bullish technicals this year. For example, a closer look shows that the coin has formed an inverse head-and-shoulders pattern, which is a common bearish reversal sign. While the price is below the left shoulder, the ongoing retreat may be a false breakout that will lead to a strong rebound.

The Relative Strength Index (RSI) and the Average Directional Index (ADX) are hinting at a potential reversal in the near term. For example, the ADX index has dropped slightly in the past few weeks, a sign that the downtrend is losing momentum.

At the same time, the Relative Strength Index (RSI) has dropped to 31, its lowest level since July last year. It has dropped from a high of 73 in August last year.

A closer look at the RSI shows that Ethereum price always rebounds whenever it moves to the oversold level. For example, the coin rebounded in April last year as the RSI moved to the oversold level of 30.

Therefore, a rebound may happen soon, with the next key target being $5,000, which coincides with the ultimate resistance level of the Murrey Math Lines tool. A move to that level will be a 155% surge from the current level.

Ethereum Fundamentals are Highly Supportive

Meanwhile, data compiled by third-party platforms shows that Ethereum’s fundamentals are highly supportive of its price in the near term.

First, data shows that Ethereum’s total value locked (TVL) has dropped from $93 billion in August last year to $55 billion. This retreat, however, is primarily because of the ongoing Ethereum price crash. In ETH terms, the TVL is hovering near its all-time high. It is 29.9 million ETH tokens, a few points below the all-time high of 26.37 million ETH.

Second, data shows that Ethereum has become one of the fastest-growing networks in the crypto industry. The network handled over 72 million transactions in the last 30 days, up by 27% YoY. Its active addresses jumped by 20% to over 15.1 million, while fees soared to $20 million.

Third, the Ethereum price may benefit from this week’s ETHDenver event, which will gather major policymakers such as Paul Atkins and Hester Peirce, as well as top developers in the ecosystem. In most cases, Ethereum tends to do well when this happens because of the potential news.

Additionally, Ethereum has become a major player in the real-world asset (RWA) tokenization industry, which is expected to continue growing in the coming years.

Data compiled by RWA shows that the network holds over $14.5 billion in assets, up by 14% in the last 30 days. RWA transfers jumped by 98% to over $26 billion in the last 30 days. The same is happening in the stablecoin industry, where it has become the most dominant chain.

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