Experts Suggest 4 Compelling Reasons for a Potential Ethereum Price Surge in May
Here Comes the Ethereum Rebound, Analysts Predict 📈
May's here, dripping with optimism for Ethereum (ETH) investors! After a five-month slide, it's time for ETH's price to rebound, according to financial experts. Here are four compelling reasons why May 2025 might just be ETH's comeback month.
Four Reasons Ethereum Could Have a Strong Recovery in May 2025 🔳
Historical Trends ⏳
Take a trip down memory lane with us. Historically, ETH puts on its best show in May. Data from CoinGlass shows an average return of 27.36% for the month, making it the strongest performer among all twelve months [1]. Even though every May doesn't guarantee a win, it typically brings a positive vibe and momentum for ETH. So, with the current market conditions, analyst Cyclop predicts ETH to achieve the $2,500 target [1].
Undervalued ETH 📉
When it comes to on-chain data, the MVRV (Market Value to Realized Value) ratio is a critical factor. Analyst Michael van de Poppe points out that, as of now, ETH's MVRV ratio is at its least since March 2020, when the COVID-19 crisis rattled the crypto market. A low MVRV ratio suggests ETH is selling below its real on-chain value. This signal has only popped up six times in the last ten years, usually preceding substantial recoveries. The chart also hints at significant growth within the upcoming 3 to 12 months [1].
Whale Accumulation 🐋💰
Ethereum whales have been working behind the scenes, growing their ETH stashes despite the price drop. According to CryptoQuant, these big fish didn't give up on their investing strategy even when ETH's price took a dive, and they kept piling on ETH while sitting on unrealized losses [1]. On March 10, whale-accumulation accounts held 15.5356 million ETH, but by May 3, that number had escalated to 19.0378 million ETH - a Kyle/Jordan Belsico-worthy 22.54% increase [1]. Analyst Carmelo_Alemán explains that these massive ETH holders show their belief in the asset, project, and ecosystem, with their on-chain behavior indicating long-term optimism and expectations for short-term gains [1].
Pectra Upgrade and FOMC Meeting 📅
The Pectra upgrade is scheduled for May 7, 2025, and it aims to improve wallet usability and the overall user experience [1][2]. This upgrade could boost the adoption of dApps and the long-term demand for ETH. On the same day, the Federal Open Market Committee (FOMC) will hold its meeting to announce the interest rate decision [1][2]. If the news from this meeting is favorable, it could amplify ETH's short-term gains, creating a perfect storm for ETH's rebound [1]. However, if the news is negative, it might complicate ETH's price action in May [1]. So, keep a close eye on this macrouniverse factor!
Disclaimer 🔒
To follow the guidelines of the Trust Project, BeInCrypto is dedicated to delivering unbiased, transparent reporting. This article aims to provide accurate, current information, but readers are encouraged to verify facts independently and consult a financial advisor before making any decisions based on this content [1]. Please take note that BeInCrypto's Terms and Conditions, Privacy Policy, and Disclaimers have recently been updated.
- References:
- BeInCrypto (2025). "Why Ethereum Might Recover in May 2025." BeInCrypto. Retrieved from https://www.beincrypto.com/why-ethereum-might-recover-in-may-2025/
- Misirikov, D. (2025). "Five Reasons Why Ethereum (ETH) Could See a Stronger Recovery in May 2025." CryptoCorner. Retrieved from https://cryptocorner.io/five-reasons-why-ethereum-eth-could-see-a-stronger-recovery-in-may-2025/
- Koh, G. (2025). "Why Ethereum's Price Could Reach New Highs in May 2025." U.Today. Retrieved from https://u.today/why-ethereum-s-price-could-reach-new-highs-in-may-2025
- CoinMarketCap (n.d.) "Ethereum's (ETH) price in United States dollars (USD)." CoinMarketCap. Retrieved from https://coinmarketcap.com/currencies/ethereum/
- The historically strong performance of Ethereum in the month of May, according to CoinGlass, indicates a possible rebound for ETH in May 2025, with a predicted target of $2,500 by analyst Cyclop.
- The current undervalued state of ETH, as indicated by its low MVRV ratio, suggests a potential substantial recovery, similar to past occurrences where the ratio has been this low.
- The accumulation of Ethereum by whales, despite market downturns, demonstrates a belief in the asset and could contribute to ETH's potential upswing.
- The upcoming Pectra upgrade to improve wallet usability and dApp adoption, coupled with the FOMC meeting's interest rate decision, could positively impact ETH's short-term gains and contribute to its rebound.
- Predictions about Ethereum's recovery in May 2025, such as those discussed here, should be independently verified, and it is advised to consult a financial advisor before making any investment decisions based on this content.
- In the realm of trading crypto assets like Ethereum, it's essential to stay updated on the latest technical advancements, macroeconomic factors, and on-chain data, including wallet usage and whale activity.
- Analysts and experts often rely on various indicators and platforms such as Coinglass, CryptoQuant, and Dapps, while examining incremental shifts in the crypto market, including ico projects and trading on decentralized exchanges (dapps).
