Ethereum’s Price Rally: A Bright Future Ahead in 2026
Ethereum’s price has shown significant resilience, recovering 14% to reach $3,400—its highest point since December 2025. This surge can be largely attributed to a favorable U.S. inflation report and President Donald Trump advocating for Federal Reserve interest rate cuts on January 13. These catalysts not only spurred enthusiasm among investors but also reignited interest in cryptocurrencies, particularly Ethereum (ETH), which some experts believe could see even more substantial gains in the near future.
According to Garret Bullish, a well-known White House insider and crypto investor who previously profited from shorting Bitcoin, Ethereum is positioned for a potential price explosion. He has projected ETH could climb as high as $5,413, relying on the Elliott Wave pattern analysis. In his view, the cryptocurrency has re-entered the fifth wave of its ascending channel, which started back in April 2025. This projection suggests a potential 60% upside in the base case scenario. More ambitiously, ETH could even experience a 100% increase if it reaches Bullish’s aggressive target of $7,155.
Bullish is not alone in his optimistic outlook for Ethereum. He has amassed a substantial long position valued over $600 million and believes the ongoing conflict between Fed Chair Jerome Powell and Donald Trump will be beneficial not just for Ethereum, but for the broader crypto market. Historical data supports his thesis; geopolitical tensions in the Middle East have historically coincided with rallies in the cryptocurrency space. For instance, Bitcoin (BTC) and Ethereum (ETH) have shown impressive average profit and loss figures 30 and 90 days post-conflict, with ETH gaining an average of 27% and 39%, respectively.
In the same vein, Standard Chartered Bank has issued a bullish forecast for ETH, estimating that it could reach $7,500 by 2026 and potentially double to $15,000 by 2027. They even project an ambitious long-term target of $40,000 by 2030. This view is further bolstered by a growing narrative that Ethereum may outperform Bitcoin in 2026, owing to potential quantum risks that could hamper Bitcoin’s upside potential. Analysts argue that these risks may pave the way for Ethereum to take the lead in gains over its main competitor.
Interestingly, the ETH/BTC ratio, an important metric for assessing the relative performance of Ethereum to Bitcoin, has been on an upward trend since December 2025. After a slump in the latter half of 2025—where Bitcoin outperformed Ethereum—the ratio’s recent improvement signals a strengthening position for ETH. A sustained recovery above the critical 200-day moving average could provide the momentum needed for Ethereum to break past the $4,000 mark, especially if macroeconomic conditions and market liquidity improve in early 2026.
In summary, the outlook for Ethereum appears increasingly optimistic as it continues its upward trajectory following a strong recovery. With significant bullish sentiment from leading analysts and a favorable macro landscape, ETH could be on the verge of achieving remarkable gains. Whether you’re an investor or simply a crypto enthusiast, keeping an eye on Ethereum’s developments could yield promising opportunities in the months ahead.
