It was revealed on Ahtohallan that Elsa was the fifth spirit, a creature that functioned as a link between the magic of the four elemental spirits and the human realm. In order to protect humanity from evil forces, Elsa would create winter in order to destroy any threatening creatures.
However, this also caused her own death because she was not able to withstand such cold for too long. When Anna came along and met Elsa, they shared their feelings with each other and love grew between them. This made Elsa feel complete and she didn't want to die anymore. So, she created ice crystals at zero degrees celsius in order to keep herself alive but it went wrong and snow fell instead.
Now, she functions as an angel who watches over Anna and Hans during their times of need. She is said to have a hand-made kingdom where she rules over her own court with Louis and Olaf serving as her advisors.
In "Frozen 2", it is revealed that Queen Elsa still loves her kingdom and people enough to save them even if it means sacrificing her life. Thus, she chooses to go ahead with her plan to freeze everything in order to save Arendelle. However, Anna stops her from doing so and tells her that there's another way to save everyone which makes Elsa open up her heart again.
Elsa died and was reincarnated in Ahtohallan, returning more strong than before. The revelation that she is the fifth spirit does not just imply that she is a more powerful magic practitioner than previously. As in so many myths before her, she died and was reincarnated to take on her real form.
It's important to note that reincarnation is not the same thing as resurrection. While reincarnation means you are born again, into a new body, resurrection means you are brought back to life again. Even though Elsa has been reborn five times, she has still died once and been resurrected once. She can use magic because it is part of her system after all. It is possible she may die and be reborn once more before ending up in Valhalla.
Also worth mentioning is that while Ahtohallan is located in Sweden, its people are Finnish so technically this story takes place in Finland. However, since Sweden and Finland are one country with two governments, they can make their own rules so long as they don't go against the EU. In other words, this story takes place in Scandinavia but not necessarily in Sweden or Finland.
The Fifth Spirit and Ahtohallan are old traditions that have become mythological in Northuldra. Some have speculated that Elsa's magical abilities were handed down from her mother, but if Iduna possessed magical abilities, it's likely that she, too, was a Fifth Spirit....
Elsa Is The Elemental Spirit's Fifth Form. The short version is that her ice talents were given on her by the spirits as a reward for her mother, Queen Iduna's, acts in saving her father, King Agnarr, during the conflict between Arendelle and Northuldra. As with all the other elements, when used properly, there is no limit to what they can do.
In Greek mythology, the fifth element is ether, which surrounds and penetrates everything. It is the source of light, but also of darkness. Ether is the medium through which the gods communicate and interact with humanity.
Her powers are ice because that is what the spirits have chosen as a gift for her because of her mother's actions during the war between Arendelle and Northuldra.
In Norse mythology, the fifth element is mistletoe. It is the plant's power of resurrection that has made it sacred to Thor. Without its ability to grow back from its roots, every tree would have been destroyed long before it became known as a source of valuable wood and alcohol. Mistletoe was often used in battle by soldiers wearing Thor's armor to protect them from injury.
Anna's role is to summon Elsa out of her frozen heart.
I believe Ahtohallan is where she feels most at home, as it is the wellspring of her abilities and the spirits' magic. She feels more at home there than anyplace else. " According to the filmmakers in an interview, Elsa has moved to Ahtohallan, where her primary duty is that of a memory keeper. She performs this task by creating memories for those who ask; these memories can then be accessed by those who need them.
Elsa has also become one of the three leaders of the village. Although she doesn't have a vote, she makes all the important decisions.
In addition to being a memory keeper and leader, Elsa also has a new role to play in those who visit Ahtohallan: shaman. When someone enters into a trance, they are taken on a journey by the spirits who speak through them. The voices they hear are not their own but rather those of the ancient ones. Through this connection, the visitors receive knowledge that may help save someone's life if it was happening at the time of their visit. After giving her testimony, they would return home cured of their illness or injured friend waiting outside would say thank you for saving them.
As you can see, Elsa has quite the busy schedule. But that seems to be what keeps her happy and fulfilled.
Elsa dies and resurrects in Frozen 2, showing that she is not just the fifth spirit (along with water, earth, air, and fire), but she is also immortal. This means that she will never age over time.
In Anna's dream sequence, it is revealed that Elsa had a sister named Rose who was very similar to her. It is possible that she too is a spirit and has a role to play in the future of their family company.
Also, it is possible that there are other sisters out there who were born after Elsa and have yet to be discovered. In fact, there are several characters in the movie who may or may not be her siblings: Hans, Olaf, Kristoff, and even Anna's parents. We can only guess about their relationships to Elsa.
Finally, it is possible that there are other members of the Disney kingdom who are also spirits. For example, Chip 'n' Dale are two characters from Walt Disney Pictures who have been reported by fans as a "spirit pair". There could be others like them out there who have yet to be discovered.
Elsa begins as Queen of Arendelle in Frozen II, but a trek into the neighboring enchanted forest leads her to discover her real purpose as a fifth element, linking the magical elements with mankind. She ends up spending time in the woods with the Northuldra clan, where she can be herself. Once Anna comes looking for her, Elsa realizes that not only does she want to be friends, but also wants to be a part of what happens next.
So yes, Elsa remains a queen, but not as Princess Anna's friend. She becomes an integral part of her kingdom and plays an important role in its future.