Ethereum's $5,000 Comeback? Why The Recent Dip May Signal a Powerful Reversal Despite Underperforming Bitcoin

Ethereum Poised to Rebound Toward $5,000?

Investor sentiment took a hit last week with Bitcoin's decline, but the crypto market appears to be regaining strength. Bitcoin has already climbed back above $110,000, and Ethereum is once again trading above the psychological $4,000 threshold. While ETH reached an all-time high in August, many are wondering if we can expect another upward movement from the second-largest cryptocurrency by market cap.

Ethereum's Price Rebounds 1.5% in 24 Hours

ETH shows a slight decrease over the past seven days and has fallen nearly 7% over the month. However, Ethereum's price has rebounded by 1.5% in just 24 hours, suggesting a potential recovery could be forming.

Meanwhile, the ETH/BTC pair has dropped by almost 1% in a week and has plummeted more than 10% in a month. This indicates that ETH has been weakening against both the dollar and Bitcoin over the past month. Despite this, the current dip may simply represent a temporary pullback rather than a reversal of the longer-term trend.

Ethereum Bounces Off Weekly Support at $3,900

After serving as resistance for several months, the $3,900 level now appears to be functioning as support. Indeed, ETH's price has just rebounded around the $3,900 mark and between the bullish moving averages (EMA 9/EMA 18).

ETH is displaying a bullish trend on the weekly timeframe. Under these conditions, Ethereum has the potential to rebound and exceed $5,000. However, to achieve this, it will need to maintain its position above $3,900. If this level is lost, the price could head toward the support at $2,900.

The RSI is currently falling, but it has been generally rising since April. To maintain strong momentum, the RSI will need to develop above 74.

Potential Return to $4,700 for ETH?

Following a buying reaction below $4,000 and at the level of a bullish trendline, ETH's price has returned to the bearish moving averages (EMA 9/EMA 18).

If the price remains above the bullish trendline and $4,000, it could return to the resistance level at $4,700. Conversely, in the event of a drop below $4,000 and a break of the trendline, ETH could revisit the support level at $3,500. Meanwhile, the RSI remains below the bearish trendline, indicating that momentum is still fragile on the daily chart.

Technical Outlook Remains Cautiously Optimistic

ETH has successfully bounced around the $3,900 mark. As long as the $3,900 level holds on the weekly chart, ETH has the opportunity to establish a new all-time high. Ethereum continues to have buyer support, and the altcoin market capitalization is showing interesting signals.

The current market structure suggests that Ethereum could be preparing for another push toward the psychologically important $5,000 level, particularly if broader crypto market sentiment remains positive. With Bitcoin showing strength above $110,000, there's a good chance that Ethereum could benefit from the overall market momentum.

For traders and investors, watching these key price levels will be crucial in the coming days. The $3,900 support and $4,700 resistance represent the most significant barriers to monitor as Ethereum attempts to regain its upward trajectory toward potentially new all-time highs.