Ethereum Price Shows Potential Rally Patterns: Will it Reach $4,800 or $7,000?

Ethereum (ETH) has bounced back above a key support level following a brief decline, recovering to around $4,150 after an over 8% gain in 24 hours, despite being down more than 8% for the week.

Recognizable Pattern Follows False Breakdown

A chart from Trader Tardigrade illustrates a typical price pattern showing a false breakdown followed by a rebound in support, leading to a potential rally.

$ETH has reclaimed support after a false breakdown. The pattern suggests a potential rally ahead. Source
Translation: $ETH has regained the previous low designated as support after a false breakdown.

🔴 False breakdown
🟡 Reclaim
🟢 Rally

The pattern indicates a likely rally, moving past the previous high soon. 🚀

The same sequence has transpired multiple times in the last year, each time resulting in a rapid recovery. The latest configuration shows ETH reclaiming the $3,650 zone, suggesting a potential rise to the $4,800 mark if momentum continues.

Price Targets $7,000 by Mid-2026

Investor Mike Investing shared a weekly ETH chart forecasting a long-term target of $7,000 by May 2026. The analysis indicates ETH is trading above its 200-week moving average of about $2,447, previously a baseline during market cycles.

Notably, during the downturn, significant firms including BlackRock and Vanguard reportedly increased their ETH holdings, though this has yet to be verified through public filings, hinting at a strong recovery possibility if ETH maintains its support.

I’m officially saying it… $ETH had its last significant pullback below $4,000 before it embarks on a multi-month rally. Source
Translation: I’m officially claiming that $ETH had its final major pullback below $4,000 before starting a multi-month rally.

ESCALATING U.S. DEMAND

On October 10, on-chain analyst CryptoOnchain reported a surge in Ethereum’s Coinbase Premium, peaking at +6.0, indicating ETH traded significantly higher on Coinbase compared to other exchanges like Binance — often a signal of robust U.S. demand.

“While the broader market saw a sell-off, a notable wave of buying occurred on Coinbase,” according to the report.

This kind of accumulation is typically indicative of institutional interest, especially during market pullbacks. As major investors seem to be positioning themselves during dips, a potential foundation around the current price levels may be forming.