As May approaches, ETH is facing a tailwind that cannot be ignored. At the time of writing, ETH's trading price is $1,832, having risen 15.3% in just 2 weeks.
It is clear that the price is trapped below the supply barrier at $1,900, but do not be fooled by it, as the bullish signals are very strong.
The path to $2,000 for ETH currently looks calm, with a significant influx of funds and internal upgrades quietly at work. However, once these changes occur, FOMO is expected to kick in and push ETH into a full bull market.
Catalysts quietly driving ETH's rise.
Relative to on-chain transaction volume, ETH's market price continues to decline. This refers to the mismatch between market value and fair value (MVRV). In short, ETH may be fundamentally undervalued, and smart money has positioned itself ahead of a broader market re-evaluation. Supporting this argument is the increase in the number of active whale addresses over 30 days (holding 1,000 - 10,000 ETH) to 117.
This rebound is also closely related to ETH's drop to $1,400, indicating that large entities strategically increased their holdings during market pressure.
However, that's not all, as the flow of institutional capital is becoming increasingly obvious. For example, the Ethereum ETF market had a net inflow of $6.5 million, with Fidelity's FETH fund taking all of it.
The inflow of institutional funds is like giving the green light for ETH to reach the $2,000 target, indicating that large amounts of capital are betting on a bullish scenario.
Structural changes are driving the next chapter for ETH.
The U.S. Securities and Exchange Commission (SEC) has approved VanEck's Ethereum ETF, which offers investors the dual benefits of exposure to ETH price movements and up to 5% annual staking rewards.
The recent surge in Ethereum ETFs is not surprising. These funds have indeed played a role, especially during the 'Trump Rally' after the elections, with millions of dollars pouring in daily.
Furthermore, the Pectra upgrade is set to be launched, signaling that prices will rise further. Ethereum's technical upgrades combined with staking rewards make it a win-win solution for investors.
You can see this directly in Ethereum's DeFi total locked value (TVL), which soared from $114 billion to $121 billion in just one month.
Clearly, both large investors and retail investors are seizing these opportunities. They view Ethereum as a means of storing value or a medium of stake.
All of the above dynamics are strengthening ETH's goal of reaching $2,000 in May.
