**🚀 Ethereum (ETH) in May: Ready to Rally or Stay Sideways?**
**📌 Flat Performance in April:**
- **ETH price trapped below $2,000** throughout April.
- **Network activity decreased**: Decline in active addresses, daily transactions, and network fees.
- **Lackluster sentiment** influenced by overall stagnation in the crypto market.
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### **✨ 3 Factors Boosting ETH in May:**
1️⃣ **Increased ETH ETF Inflow**
- **Net inflow of $66.25 million** in April (vs outflow of $403 million in March).
- Signals **the return of institutional investor confidence**.
2️⃣ **Strong DeFi Dominance**
- **>50% of DeFi TVL** still resides in Ethereum.
- Lending, staking, and yield farming protocols continue to rely on ETH.
3️⃣ **Pectra Upgrade (May 7, 2025)**
- **Scalability↑, fees↓, security↑, smart account functionality**.
- Potential to **increase ETH adoption & demand**.
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### **📈 ETH Price Prediction for May:**
- **Gabriel Halm (IntoTheBlock)**: ETH could **break $2,000** and stabilize above it if:
- ETF inflow is consistent.
- Crypto & stock markets are stable.
- Pectra upgrade goes smoothly.
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|### **⚠️ Risks to Watch Out For:**
- **CPI Report (May 13)**: If inflation is high → selling pressure in crypto & stocks.
- **Correlation with Stock Market**: ETH is still tied to the performance of Nasdaq/S&P 500.
- **Global macroeconomics**: Hawkish Fed signals could trigger a correction.
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### **💡 Strategies for Traders/Investors:**
- **Monitor ETH ETF inflow** → an indicator of institutional sentiment.
- **Watch the Pectra upgrade** → it could be a positive catalyst.
- **Beware of post-CPI volatility** → avoid over-leverage.
