Ethereum gained 46% in May, forming a bullish Morning Star pattern.
Whale accumulation and ETF inflows signal rising investor confidence.
ETH must break $2,850 to target $3,300; $2,500 remains key support.
Ethereum — ETH, has dropped a signal bulls have waited months to see—a bold Morning Star on the 1M chart. That pattern doesn’t whisper; it shouts strength. Despite short-term dips, Ethereum might be warming up for a real breakout. The $2,500 wall looks shaky. If momentum keeps building, the next stop could be $3,300. Let’s unpack what’s fueling this move and why May might change the game for ETH.
https://twitter.com/CryptoBullet1/status/1929106701313081416 Whales, ETFs, and a Spark of Confidence
Ethereum gained nearly 46% in May. That’s not just a recovery—it’s a roar. Investors didn’t just return; they flooded back. Addresses holding between 10,000 and 100,000 ETH added 1.12 million coins. That’s the biggest whale accumulation since July 2022. Whales don’t usually bet blind. Their appetite hints at confidence in Ethereum’s long-term climb. Meanwhile, US spot Ethereum ETFs recorded $493.94 million in net inflows. Nine straight days of positive flows added fuel to the fire.
Thursday alone saw $91.93 million pour in. That kind of demand doesn’t happen without serious conviction behind it. And while prices cooled slightly on Friday—down 2.6% to around $2,578—the monthly close painted a clearer picture. A beautiful Morning Star formed on the one-month chart. That pattern usually signals a trend reversal. Combined with all the fresh capital coming in, it gives bulls something to cheer for.
Key Levels Ahead: Battle Between Bulls and Bears
Ethereum lost the $2,750 resistance after rejection and slipped below the 14-day EMA. ETH also broke below the ascending triangle support. That’s a red flag—but only if the $2,500 level gives out completely. If the price of ETH falls below $2,500, the next pit stop lies between $2,260 and $2,100. That range holds support from a golden cross, where the 50-day SMA climbed above the 100-day. Such crossovers often signal a bullish future.
To break higher, Ethereum must reclaim $2,850. A strong close above that resistance could unlock the path to $3,300. It won’t be easy—short positions on Binance still outweigh longs. Some traders clearly expect a pullback. However, exchange data shows something different. Over 114,000 ETH exited exchanges on Friday. That ended a three-day inflow streak. Net outflows like this suggest strong spot buying, not fear.
Momentum indicators like the RSI and Stoch show mixed signals. Both are resting above neutral levels but drift downward. That hints at fading strength—but not a collapse. Bulls aren’t charging full speed, but they haven’t turned back either. Ethereum stands at a fork in the road. One way leads to $2,100. The other breaks through $2,850 and aims for $3,300. The chart favors the bulls, the whales are clearly hungry.
