Ethereum's price is moving towards recovery in May thanks to cyclical behaviors and strong institutional support.
Ethereum is close to a rally that could reach its previous peaks in May. This optimism is based on many factors related to ETH's past May performance and institutional investments directed towards the network.
Ethereum May Recover in May
Despite the recent price drop, short-term recovery expectations for Ethereum are increasingly strengthening. Crypto analyst Cyclop emphasized in his posts on the X platform that the Ethereum network has historically performed strongly in May.
Ethereum has shown an average increase of 27.36% at the end of May since 2016. In 2017, this rate reached as high as 70.29%. Last year, ETH closed May with a 24.65% increase, reinforcing strong expectations for 2025. Cyclop predicts that ETH could reach $2,500 by the end of May based on this seasonal upward trend. Additionally, the graph shared by TraderPA shows that ETH had its strongest monthly close in 2025. Cyclop states, 'The last time we saw such a hammer candle closure, the price increased by 60%.'
However, investors should not forget to closely monitor significant developments, such as the UK regulators' plans to ban the DeFi lending market.
Institutional Investors Trust Ethereum
Many large institutional players continue to prefer Ethereum for blockchain solutions. China-based Alibaba is developing a new Layer 2 solution based on Ethereum. Germany-based Deutsche Bank has also taken a similar step.
Financial giants BlackRock and Fidelity are tokenizing their assets on Ethereum, while Visa and Mastercard are using Ethereum for Web3 solutions. Sam Altman's Worldcoin project has achieved impressive performances on the Ethereum network with Coinbase's Layer 2 solution, Base, reaching Stage 1 EVM rollup level.
Trump's WLFI fund holds 94% of its crypto assets in Ethereum, while Circle has also moved a large portion of its stablecoin assets to the Ethereum network. This strong institutional support could push Ethereum's price upwards in the short term.
The Major Restructuring Process for Ethereum is Starting
Aware of weak metrics and criticisms of price performance, Ethereum developers are continuing their work for a significant update on the network. Researcher Dankrad Feist stated that Ethereum could face significant risks if it does not increase its gas limit by 100 times within five years.
Moreover, Vitalik Buterin suggests that Ethereum should undergo a restructuring similar to Bitcoin's simplicity. This step could positively impact Ethereum's price. However, Cardano's founder Charles Hoskinson claims that Ethereum will collapse within 15 years due to its Layer 2 solutions and that its technology is becoming outdated.
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