Ethereum outperformed Bitcoin with a 6% gain, driven by momentum rather than strong new inflows. Ethereum hit an intraday high of $4,254 early Monday as traders shifted to high-beta assets as Bitcoin prices strengthened.
Ethereum posted a strong rally on Sunday, suggesting that recent price action is still based on momentum, with the recovery from the October 22 low of $3,711 continuing into its fifth day.
Ethereum’s rally comes amid a broader recovery in the cryptocurrency market, reversing some of the decline following this month’s liquidation cascade. At the time of writing, Ethereum was trading at $4,171, up 5% daily and 3.70% for the week.
The rally above $4,000 has pushed ETH price near the main daily SMA 50 resistance at $4,236, but on-chain data points to analysts outlining the possibility of ETH price reaching $5,000 and larger wallets joining it.
On-chain data analysis firm Santiment said in a recent tweet that “whales and sharks” holding between 100 and 10,000 ETH have bought back approximately one-sixth of the coins they sold between October 5 and October 16, explaining this as a sign of increased confidence among large accounts.
Ethereum bull flag activated
Analyst Jake Wujastyk said in a tweet that Ethereum’s bull flag pattern continues and that 2025 will have similarities to 2020.
The #Ethereum Bull flag is still valid.
2020 compared to 2025 is staggering. Let’s see if the similar trend continues for $ETHUSD in the next 1-2 weeks. pic.twitter.com/5k0g5ZvcbW
— What Wujatics (@Jke__Wujaastic) October 26, 2025
This setup supports looking higher for longer if resistance disappears and the recovered level holds on subsequent retests.
Short-term resistance on the way to $5,000 remains $4,239, $4,756, and $4,955. On the macroeconomic front, the Federal Reserve is scheduled to make a decision on interest rates on October 29th, which could be the big market mover this week.
The Ethereum Fusaka hard fork upgrade is scheduled to launch on the Hoodi testnet on October 28th at 2:53pm.