Ethereum (ETH) has demonstrated notable performance with a 37.7% increase over the last month,ethereum founder yet the second-largest cryptocurrency by market cap continues to trade more than 33% below its June 2024 highs. Despite this, a combination of technical indicators and on-chain metrics indicates that ETH could be preparing for a substantial upward move.
Bullish Signals Emerge on Ethereum's Monthly Chart
Earlier today, crypto trader Merlijn The Trader pointed out a significant technical development on Ethereum's monthly price chart. The appearance of a Morning Star candlestick pattern—a classic bullish reversal signal—suggests that ETH may be transitioning from a downtrend to an uptrend. This pattern typically forms after a period of decline and consists of three candles: a large bearish candle, a small indecisive candle, and a strong bullish candle that closes well into the first candle's range.
Beyond technical analysis, institutional interest in Ethereum is on the rise. According to a recent CoinShares report, global crypto exchange-traded products (ETPs) attracted $286 million in net inflows during the week ending May 30, with Ethereum-based ETPs playing a significant role in this trend. Data from SoSoValue further highlights this momentum, showing that spot Ethereum ETFs recorded $564 million in net inflows in May 2025, a substantial increase from $66 million in April.
Another bullish factor is the growing amount of ETH being staked on the network. Crypto analyst Ted Pillows noted that Abraxas Capital staked $7.5 million worth of ETH earlier today. Staking involves locking up ETH to support network security and transaction validation under Ethereum's proof-of-stake consensus mechanism, with participants earning rewards in ETH for their contributions.
Key Support Levels to Watch
Veteran analyst Ali Martinez has identified the $2,550 level as a critical support zone for ETH. Maintaining this level could be crucial for sustaining bullish momentum, with Martinez projecting a potential move toward $2,650 if support holds. Meanwhile, analyst Titan of Crypto has suggested that ETH might be preparing for a larger rally to $3,800, citing a breakout from a bullish flag pattern on the daily chart and the cryptocurrency's position above its 200-day exponential moving average (EMA)—a commonly watched indicator for sustained upward trends.
Adding to the positive outlook, nearly 300,000 ETH were withdrawn from Binance between mid-April and mid-May, potentially tightening supply. At the time of writing, ETH is trading at $2,538, reflecting a 0.8% increase over the past 24 hours.
