Ethereum (ETH) posted its inaugural bullish month-to-date return for the year, climbing more than 46% following renewed investor optimism fueled by whale buying and robust flows into US spot Ethereum ETFs. Addresses with 10K–100K ETH increased their balance by 1.12 million ETH, with ETFs witnessing close to $494 million in net inflows, reflecting increasing institutional appetite. In spite of testing primary technical support levels and falling to $2,578, ETH continues in the spotlight as exchange net outflows indicate continuous spot buying pressure. Mixed signals from open interest and technicals indicate short-term prudence as ETH targets potential resistance and support levels.
KEY LOOKOUTS
• Observe whether ETH can hold support at the $2,500 level and remain in the ascending triangle formation. A failure to hold here may result in a dip towards the $2,260–$2,100 support area.
• ETH needs to retake and close above the $2,850 resistance to affirm continuation of the trend. Inability to breach this level might result in more consolidation or fall.
• Ongoing net flows into Ethereum ETFs and continued buying by whale accounts may be bullish triggers, particularly if institutional flows continue to pick up further in June.
• RSI and Stochastic Oscillator are exhibiting declining bullish momentum. Should these indicators continue falling, it could indicate a short-term pullback or heightened volatility in the offing.
As Ethereum (ETH) enters June, pivotal technical and on-chain indicators will play a decisive role in deciding its short-term trajectory. Holding above the support level of $2,500 and remaining within the ascending triangle formation is important to prevent a deeper correction towards the $2,260-$2,100 zone. A strong breakout above the resistance of $2,850 would confirm renewed bullish momentum and could set the stage for further rallies. While rolling with whales and considering consistent ETF flows as strategic positives with increasing institutional conviction, negative divergence from the weakening signals of the Stochastic Oscillator and RSI indicates waning bullish pressure with possible rising volatility.
Ethereum’s success in staying above the $2,500 support level will be most important to preserving its bullish setup. A close above $2,850 would affirm ongoing upside, as long as ETF inflows and whale buying continue to be strong bullish indicators. Weakening momentum indicators do warn of short-term caution, though.
• ETH had a 46% return in May, its first positive monthly return on the year.
• 10K–100K ETH addresses added 1.12 million ETH in May — biggest monthly gain since July 2022.
• US spot Ethereum ETFs saw net inflows of approx. $494 million, turning over 2025 flows into positive.
• ETH derivatives open interest increased by 43% in May, reflecting increased trading activity and market participation.
• ETH is probing the ascending triangle support and the $2,500 zone, both vital to sustain bullish momentum.
• A break above $2,850 is required to validate a continuation of the uptrend; otherwise, it could result in consolidation or fall.
• RSI and Stochastic Oscillator are sloping downwards, indicating diminishing bullish momentum and short-term volatility.
In May 2025, Ethereum staged a solid recovery, registering its first positive-performing month for the year with a 46% increase. The recovery was largely driven by enhanced confidence by big investors and institutions. Ethereum whales — addresses that hold 10,000 to 100,000 ETH — substantially grew their holdings, pumping in more than 1.12 million ETH in the month. This was the largest monthly aggregation by whales since mid-2022, indicating firm conviction in Ethereum’s long-term worth and prospects.
ETHEREUM DAILY PRICE CHART
CHART SOURCE: TradingView
Institutional demand also accelerated as US spot Ethereum ETFs saw almost $494 million of net inflows. The steady inflows managed to turn the ETF market’s overall stance for 2025 into positive territory. This increased activity on the part of retail and institutional investors indicates a change in sentiment, as Ethereum again becomes the focus of attention in the wider crypto space. With increased investor participation and supportive macroeconomic conditions, Ethereum is again taking center stage as a long-term strategic play.
TECHNICAL ANALYSIS
Ethereum is now testing a crucial support level at $2,500, close to the lower edge of an ascending triangle formation. The recent price fell below the 14-day Exponential Moving Average (EMA), indicating short-term bearish pressure. If ETH maintains this support, it can try to retest resistance around $2,850, which is critical for validation of further upward price action. Momentum gauges such as the Relative Strength Index (RSI) and Stochastic Oscillator are declining, indicating diminishing buying power and potential for ongoing consolidation or near-term pullback.
FORECAST
If Ethereum holds its base in the vicinity of $2,500 and can overcome the resistance zone of $2,850, it might mark a very good continuation of the uptrend. A successful break could pave the way for ETH to aim for the $3,000 psychological level and beyond, depending on continued whale accumulation and ETF inflows. A reversal of bullish momentum underpinned by upbeat macroeconomic sentiment can further solidify Ethereum’s bullish argument and draw further investor attention in the weeks ahead.
Conversely, if Ethereum cannot sustain itself above the $2,500 level of support and confirms a break down below the ascending triangle formation, it may see higher selling pressure. This can drive ETH back to test the next significant area of support between $2,260 and $2,100. Weakening momentum signals and rising short positions on major exchanges indicate that a pullback is imminent if buyers fail to take charge soon. Investors need to carefully observe price action around these important levels to assess the power of the ongoing trend.
