Ethereum Bulls Target $5K as Technical Barriers Crumble

Ethereum has been struggling to break through technical barriers and establish lasting momentum. Tom Lee believes that ETH could target $5,000 if it breaks above major resistance, a level he expects to reach before the end of 2026.

A stronger ETH rally could trigger liquidity rotation and ignite the next altseason. Several signals suggest that momentum is shifting towards buyers, including Ethereum's position relative to the daily Ichimoku Cloud. If ETH moves above the cloud's upper boundary, it would mark a major technical shift and give buyers stronger control over the trend.

The Russell 2000 small-cap index recently broke out from a broad trading range, similar to past patterns that preceded Ethereum's major rallies in 2017 and 2021. Additionally, the ISM Manufacturing PMI has moved above the 55 level, indicating improving manufacturing activity and stronger economic momentum.