It is on the verge of a rise that may reclaim its previous highs in May. This optimism is based on several factors, including Ethereum's strong historical performance in May and institutional investments flowing into the network.
While there has been extensive discussion about the recent decline in Ethereum, expectations are rising for a near-term recovery. In a post on platform X, the anonymous crypto analyst Cyclop drew attention to the network's strong historical performance in May.
Since 2016, the price of Ethereum has increased at a rate of 27.36% by the end of May. In 2017, this rate was 70.29%. Last year, it closed on May 6 with an increase of 24.65%, bolstering expectations for strong performance in 2025.
Cyclop expects it to reach $2500 by the end of May based on seasonal strength. According to the chart shared by the anonymous trader TraderPA, Ethereum had its strongest monthly candle close in 2025. He also said: "The last time we saw a hammer candle close like this, prices were up by 60%."
However, investors should closely monitor key developments, such as the UK regulators' plan to ban the DeFi lending market.
Aware of the criticism regarding declining metrics and weak price performance, developers are preparing a major network update. Researcher Dankrad Feist stated that Ethereum would be at significant risk if it does not increase its gas limit by 100 times in five years.
On the other hand, Vitalik Buterin suggests a restructuring similar to Bitcoin's simplicity. This could positively impact the price of Ethereum. However, Cardano founder Charles Hoskinson claims that Ethereum will collapse in 15 years due to Layer 2 solutions and that its technology is outdated.
⚠️ Note: My posts are not investment advice. There may be errors due to translation. Please conduct your own review. You can also share your thoughts in the comments section.
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