TL;DR
- Industry participants reminded that May has been a historically strong month for Ethereum, with some expecting a significant surge if key resistance levels are breached.
- ETH outflows from exchanges have increased in the last seven days, suggesting investors are moving to self-custody – often seen as a bullish sign due to reduced selling pressure.
Where Next for ETH?
The second-largest cryptocurrency in terms of market cap experienced a substantial pump over the past 14 days, rising by 16% and currently trading at over $1,800. Despite this resurgence, its overall performance in recent months has been less than satisfactory.
Astute observers, such as popular X user Carl Moon, have noted that Ethereum (ETH) has been in a downturn for five consecutive months; a significant dip occurred in February, where the price plummeted nearly 32%. Nonetheless, May has historically been one of the most favorable months for Ethereum, with losses recorded in only three out of ten Mays throughout its history. On average, Ethereum has delivered returns of approximately 27.31% during this time.
Similar sentiments have been echoed by X user SHERIFF, who pointed out that ETH has experienced declines in seven of the last eight months. This negative trend was accompanied by low market sentiment and minimal volatility. However, analysts believe that these are often the periods when the groundwork for a significant price movement is laid.
Merlijn The Trader provided a fascinating comparison between Bitcoin’s performance in 2020-2021 and Ethereum’s current market structure, suggesting that history may favor a potential price explosion and indicating he is “loading up on ETH.” His insights remind us of when Bitcoin consolidated at around $8,000 before skyrocketing to over $64,000.
In 2020, Bitcoin consolidated at $8K…
Most ignored it. Then it hit $64K.
Today, Ethereum is showing the exact same structure.
Accumulation. Compression. Explosion loading.
I’m loading $ETH. History is on our side.— Merlijn The Trader (@MerlijnTrader) May 1, 2025
CRYPTOWZRD has also forecasted a potential short-term scenario, setting a key resistance target at $2,120, with the possibility of reaching $2,800 if this level is surpassed.
Abandoning Exchanges
Another factor supporting the optimistic predictions is ETH’s exchange netflow. Over the past week, outflows from exchanges have exceeded inflows, signaling that investors are moving toward self-custody methods. This shift typically indicates bullish sentiment as it reduces immediate selling pressure.
With historical trends and current market activities indicating a potentially bullish movement for Ethereum, many in the crypto community are keenly observing the upcoming weeks for any significant price shifts.
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