ETHEREUM (ETH) has refused for five consecutive months. However, it enters May with an increase in optimism. Historical trends, on-chain data, whale accumulation behavior, and upcoming technology upgrades form a strong foundation for a potential price rebound.
Here are four main reasons why analysts believe that ETH can recover in May.
Why Ethereum can recover in May 2025
The first reason comes from the performance of the ETH price. Data from coinglass shows that May is usually the best performing month for ETH.
Over the years, ETH has posted an average return of 27.36% in May, the highest of all month.
While not everyone can end with gains, historical trends suggest this month usually causes positive emotions and upward momentum for ETH. Due to current conditions, Cyclop expects ETH to maintain its growth this month and reach the target of $ 2,500.
“May History is the best month for ETH. $ 2,500 by the end of the month,” Analyst Cyclop predicted.
Another critical factor that supports a bullish perspective is on-chain data, especially the MVRV ratio (market value to realize). According to the analyst Michaël van de poppeThe MVRV ratio of the ETH is currently the lowest since March 2020, when the pandemic covid-19 is severely affecting the crypto market.
A low MVRV ratio suggests that the ETH is undervalued compared to its on-chain value. This signal has appeared only six times in the last ten years, often preceded by major recovery. The chart also indicates that ETH may experience significant growth within the next 3 to 12 months.
The third bullish signing has recently been the habit of whale accumulation. According to CryptoquantThese investors did not abandon their approach even when ETH prices dropped, and many accumulation addresses remain in the unlucky losses.
Instead, they increased their ETH handles.
On March 10, the accumulation addresses were held by 15.5356 million ETHs. By May 3, this number rose to 19.0378 million ETH – an increase of 22.54%.
“Ethics investors demonstrate strong beliefs in property, projects, and ecosystems. Their on-chain behavior reflects the structural beliefs and clear expectations of short-term appreciation-Ethereum's greater evolution,” Carmelo_alemán analyst Says.
Finally, Ethereum's upgrading PECTRA, which is scheduled for May 7, 2025, contributes to market optimism. Upgrading aims to improve the use of purse and user experience. It can boost DAPP adoption and long-term ETH demand.
Meanwhile, May 7 is also the date of the FOMC assembly, where the Fed will announce its interest rate decision. If the macroeconomic news is desirable, it can strengthen the short-term ETH acquisitions next to other factors.
However, if the news is negative, it can complicate the ETH price action in May.
Refusal
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