NewsletterEthereum Price Recovery Soon? Key Factors Point To ETH Bull Rally Ahead
Highlights
- Ethereum price is primed for an upward climb in May.
- Investors are hinging their optimism on cyclical behaviour and institutional backing.
- Ethereum's top brass are proposing seismic changes to the design of the network.
Ethereum price is poised to reclaim its previous highs in a rally that could see ETH surpass $2,000 in the short term. The optimism is fuelled by a raft of factors, including ETH’s historically strong performance in May and an avalanche of institutions flooding the network.
Ethereum Price Set To Stage Recovery In May
While the chatter about Ethereum’s decline has reached a fervent pitch, optimism is growing for a near-term rally for ETH. Pseudonymous cryptocurrency analyst Cyclop, in an X post, opined that the network’s historically strong showing in May is a key piece of the puzzle.
Ethereum price has gained an average of 27.36% at the end of May since 2o16, famously spiking by 70.29% in 2017. Last year, ETH wrapped up the month of May with a 24.65% increase, stoking optimism for another strong performance in 2025.
Cyclop is predicting an ETH rally to 2,500 by the end of May, riding on seasonal strength. According to a chart shared by the pseudonymous TraderPA, ETH has closed its most bullish monthly candle in 2025.
“The last time we closed with a hammer candle, the price surged by 60% afterward,” said TraderPA.
However, investors have to keep their eyes on prevailing fundamentals like UK regulators moving to ban the DeFi loan market.
Institutional Investors Are Backing Ethereum Despite Price Performance
A raft of institutional behemoths is turning to the network in their pivot to blockchain solutions. China’s Alibaba is rolling out an Ethereum layer 2 solution, joining Germany-based Deutsche Bank on a similar path.
Financial giants BlackRock and Fidelity are tokenizing assets on Ethereum, while Visa and Mastercard have tapped Ethereum for their Web 3 solutions. Sam Altman’s World Project is pitching tents, with the network with Coinbase’s Base, racking impressive numbers as an L2 and graduating to Stage 1 EVM rollup.
Trump’s WLFI holds 94% of its cryptocurrency holdings on Ethereum, while Circle is opting to house a significant amount of its stablecoin in Ethereum. A combination of heavy institutional backing will prop Ethereum price for a rally in the short term.
A Massive Rebrand For Ethereum Is Underway
Aware of the barrage of criticism over falling metrics and bland price performance, developers are keen on a network upgrade. Dankrad Feist has warned that Ethereum is in danger if it fails to scale its gas limit by 100X over five years.
On the flipside, Vitalik Buterin is mooting a proposal to revamp Ethereum akin to Bitcoin’s simplicity in a move that may positively impact the ETH price. Charles Hoskinson has predicted that the network will crash in 15 years, citing layer 2 cannibalization and its outdated technology.
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