Ethereum Price Expected to Rebound and Hit $5,000 in 2026

Key Insights

• Ethereum price has formed an inverted head-and-shoulders pattern on the weekly chart.
• The supply of ETH in exchanges has continued falling this year.
• Ethereum is planning two major upgrades this year as the tokenization growth continues.

Ethereum price is on track for its worst weekly performance this year as the crypto market pullback continued. ETH token dropped to $2,965, down by 40% from its all-time high. This article highlights some key reasons why the ETH price will rebound and hit the key resistance at $5,000 this year.

A closer look at Ethereum’s short-term charts provides a feeling that the coin will continue falling. However, the weekly timeframe chart shows that it has been forming an inverted head-and-shoulders pattern. This often leads to a bullish breakout.

This pattern’s head was at $1,391, its lowest level in April last year. Its left shoulder was at $2,115, and is now in the process of forming the right one.

The coin is forming a bearish flag pattern, which could see it drop further as it completes the right shoulder. Then, it will bounce back. A rebound will likely push it to the psychological point at $5,000. This target also aligns with the Ultimate Resistance of the Murrey Math Lines tool.

ETH supply on exchanges has kept falling in recent months. This decline acts as a bullish catalyst for its price.

Data compiled by CoinGlass shows that there are now 12.8 million ETH tokens in exchanges. That’s much lower than last year’s high of 17.8 million tokens.

Falling exchange supply is a sign that investors have continued to accumulate the token in the past few months, which is a bullish sign.

BitMine has become one of the biggest accumulators in the industry. It has accumulated over 4.2 million tokens since mid-last year. Also, the management expects to hit the 6 million target this year.

SharpLink, another Ethereum treasury company, has also continued to accumulate ETH tokens and now holds over 864k tokens. In total, Ethereum treasury companies hold 6.17 million tokens, currently valued at over $18.3 billion. Most of these tokens are held in cold storage for their safety.

Additionally, more investors have continued to stake their tokens, with BitMine being the most active. The staking ratio rose to 30%, with the market capitalization rising to over $107 billion. These stakers are now earning an annual reward of about 2.85%.

Ethereum supply in exchanges is falling. American investors are driving this trend. They have accumulated ETFs worth over $18 billion. Ethereum ETF inflows have risen by $354 million this year.

The ETH team is working on major upgrades. These upgrades will boost its performance. They may push the price toward $5,000 this year.

These upgrades will come a few months after the network activates the Fusaka upgrade. This upgrade introduced the concept of peerDAS.

The main feature of the Glamsterdam upgrade will be that it will dramatically increase its speed to over 10,000. This made it one of the fastest networks in the crypto industry.

It will also introduce privacy features through the zero-knowledge proof technology. The proposals for the Hegota upgrade are still being shared.

These upgrades will enhance the network’s capabilities. This enabled it to handle numerous requests daily as the real-world asset (RWA) tokenization industry continues to grow. For example, JPMorgan selected it as its first tokenized fund.

Data shows that the number of transactions on Ethereum rose by 35% in the last 30 days to over 61 million. At the same time, the number of active addresses has soared by 53% to 13.6 million in the same period.

Therefore, the Ethereum price will likely rebound ahead of and after these upgrades happen later this year.

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