Analysis for May 12, 2025

Ethereum (ETH) continues to be in the spotlight of the crypto community. Since the beginning of May, the asset has gained over 41%, breaking important resistance levels and consolidating above the $2,400 mark. However, the current market situation increasingly raises the question: should we expect continued growth or are we already close to a correction?

Market situation and technical picture

At the time of publication, Ethereum is trading around $2,469, showing resilience after a rapid rally. The growth is accompanied by increased volumes and active interest from institutional players.

Technical indicators suggest a possible halt in growth:

RSI on the daily timeframe exceeds 70, signaling overbought conditions.

The fear and greed index for Ethereum has reached 70, reflecting excessive optimism in the market.

Key levels to watch:

Support: $2,439 — area of previous consolidation

Strong support: $2,320 — 0.382 level on the Fibonacci grid

Resistance: $2,581 — local maximum of April 2024

A breakout and consolidation above $2,580 could open the way to the next target — $2,750, where the liquidity of major players is concentrated.

Fundamental drivers

Ethereum network upgrade ("Petra"): this upgrade enhances the resilience of the network and accelerates transactions. Particularly important is that it strengthens the token burning mechanisms.

Deflationary model of ETH: since the implementation of EIP-1559, more than 4 million ETH have been burned, reducing supply and potentially increasing the value of the remaining tokens.

Expectations for Ethereum ETF: the market is actively pricing in the potential approval of a spot ETF in the US, which could open the flow of institutional capital.

Conclusion

Ethereum looks powerful and promising, but the current levels may be dangerous for new entries. The market is overbought, and a short-term correction is possible. Holding the $2,439 zone will confirm the strength of the bulls, but if this level is broken down, expect a decline to $2,320.

Recommendation: the current situation is favorable for partial profit-taking and setting protective orders. Investors and traders should closely monitor the market's reaction to the nearest support levels and news background.

---$ETH

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