In the gradually warming rhythm of the cryptocurrency market, Ethereum (ETH) has once again become the focus of the market. In May 2025, ETH increased by more than 55% in just a few weeks, becoming one of the standout performers among assets in the top ten by market capitalization. And although the recent price has slightly pulled back by 2.47%, various signs indicate that this is merely a brief respite before a new round of increases.
Is ETH ready to take off? The three core driving forces supporting its push to $5000 are worth investors' close attention.
01 | On-chain data releases positive signals: MVRV is returning to positive territory, and the technical outlook is bullish
First, from on-chain data, Ethereum's market value to realized value ratio (MVRV) has entered positive territory, indicating that most investors are currently in a profitable state, which usually means that market confidence is recovering.
According to on-chain deviation price band analysis, ETH has maintained key support areas during the pullback period; charts indicate that the price is likely to challenge $3100. Especially during the recent wave of increases, MVRV has surged from long-term lows, compounded by the color change in the chart (from negative red to positive blue), reflecting that the market is entering a structural upward channel.
These technical signals are precisely among the reference models most commonly used by Mlion.ai's on-chain sentiment analysis tools to capture trend reversal starting points.
02 | Spot ETF continues to attract capital: traditional capital is flowing back, and new momentum is strongly injected
Another key factor in this round of ETH's rise is the continued inflow from traditional financial markets. The size of the spot Ethereum ETF has surpassed $9.5 billion, and in the past 48 hours, the net inflow amount reached $77 million, showing continuous capital inflow.
This means:
Institutional funds are shifting from observation to layout
The passive demand for ETF positioning will bring continuous buying pressure
New capital forces provide stronger support for ETH
Data shows that since mid-May, the inflow of ETH ETFs has consistently led several mainstream assets, indicating that 'Smart Money' has begun to reallocate risk asset portfolios, with Ethereum being their primary battlefield.
In Mlion.ai's ETF tracking data panel, it is clear to see that the daily net inflow curve of ETH shows a low slope and a steadily rising trend—this is the most typical capital curve structure in the early stages of a market bull run.
03 | ETH/BTC ratio skyrockets: capital is rotating from Bitcoin to Ethereum
The most noteworthy trend is that the ETH/BTC ratio chart has skyrocketed over 41% in the past 8 days, indicating a structural change that suggests cryptocurrency capital is flowing from Bitcoin to Ethereum.
An increase in the ETH/BTC ratio usually means:
The market is chasing assets with higher Beta
Investors believe that Ethereum's short-term upside potential is greater than Bitcoin's
The improvement in Ethereum's ecosystem and on-chain activity is attracting more liquidity
In the ETH/BTC trading pair, Mlion.ai's dual-coin capital flow model indicates that the inflow into ETH has exceeded BTC for six consecutive days, suggesting a quiet shift in asset allocation trends in the medium to short term.
04 | On the rise, there are still three major resistance levels to overcome
Despite optimistic market sentiment, Ethereum will still face three key resistance walls while attempting to hit a historical high:
2756 USD: currently in a testing phase
3389 USD: a region of multiple rebound failures since 2022
4093 USD: approaching previous highs, with strong psychological selling pressure
If ETH can successfully break through the above resistance area, the market will enter the 'price discovery' phase, with $5000 likely becoming the next target.
Notably, Mlion.ai's AI strategy visualization module has also provided current key operational suggestions for ETH: in the short-term fluctuation, try long positions lightly around the 2750 area, gradually increase positions after breaking through $3300, and set profit-taking range at $4700~$5000.
05 | Summary: The combination of three forces increases the likelihood of ETH emerging from an 'independent market performance'
From on-chain technical indicators to capital inflow and asset rotation structure, ETH is gradually shedding its 'Bitcoin follower' role and returning to its own upward trajectory. Especially with the support of spot ETFs, it resembles a 'new gold'—backed by both technological ecology and capital market recognition.
Although there are still market fluctuations and macro risks interfering in the short term, as long as the following conditions remain valid:
ETF continues to attract capital without reduction
ETH/BTC ratio maintains an upward trend
On-chain activity and capital inflow remain active
Thus, ETH's push to $5000 is no longer mere emotional speculation, but will become a traceable structural trend.
Special Reminder:
With the current market pace accelerating, investors should closely monitor changes in key price levels and can utilize Mlion.ai's K-line analysis, on-chain data monitoring, and AI strategy visualization features to dynamically optimize their position decisions and avoid chasing high prices and selling low.
Disclaimer: The above content is for informational reference only and does not constitute any investment advice. Investment involves risks; please make cautious decisions based on your own situation.
