Will the Ethereum price trigger a breakout in May 2025? Will it reach $2200?
The Ethereum price is struggling to maintain its upward momentum above a key range, as $1800 has become a new support level for the token. Despite BTC price making several attempts to break through the consolidation area, the ETH price does not seem eager to break out. Consequently, with a sudden drop in trading volume, traders' attention on the token appears to be diminishing. This raises some concerns about whether the price will trigger a breakout this month or continue to remain within the consolidation area.
Since the last week of April, the inflow of ETFs has been quite substantial, highlighting the increasing interest of institutional investors in Ethereum, who have accumulated over 3600 ETH. Additionally, according to some reports, a whale sold 14.38 WBTC at a benchmark price of $1836, worth about $1.4 million, and bought nearly 758 BTC after nearly three years of silence. These all signal an impending bullish price trend, as the current trading pattern suggests a massive bull market that may even exceed Bitcoin's gains.
The monthly chart of ETH shows that the price has endured significant upward pressure over the past month, forcing it to close with a bearish posture. Meanwhile, despite repeated attempts by bearish forces to push the price down, the bulls still maintain upward momentum within a decisive symmetrical triangle. The RSI also remains on a downward trend and has failed to break through the trendline, indicating that bears still dominate. However, the DMI levels have begun to converge, indicating a decrease in volatility and a significant pullback is expected to form a bullish crossover.
The ETH price seems to be at the tail end of a medium-term correction, poised for a strong rebound from previous lows. Therefore, a bottom appears to have formed, potentially triggering a strong 'dead cat' bounce. This rebound may further create new highs, but the initial target price may be around $2500. If the price holds within the resistance zone of $2700 to $3200, the bullish trend may continue to new highs.
