Ethereum approaches US$ 3 million with recovery in May

Ethereum began a consistent recovery after falling to US$ 2.400 on May 17. The following day, the asset reached US$ 2.550, with a 3% increase in the last 24 hours and liquidation of US$ 22 million in short positions. The movement reignites expectations that ETH could reach the range of US$ 3.000 still in May.

Data from CoinGlass shows that, in one hour, more than US$ 7.5 million were eliminated from short positions. In total, the market recorded over US$ 158 million in liquidations during the period, with most related to long positions. The immediate resistance identified is near US$ 3.000, with sell orders accumulated at over US$ 384 million up to this range.

The technical formation known as a bull flag remains valid on the four-hour chart. The breakout of the upper trend line occurred on May 13, with a retest of support at US$ 2.470. If the price holds above this level, the projected technical target is US$ 3.720, representing a potential advance of 50%.

Analysts diverge on the scenario. While Titan of Crypto points out that the stochastic RSI at 79 suggests continuity of the positive trend, analyst Chimp of the North sees a possibility of a new retracement to US$ 2.400 before advancing towards US$ 3.300. Crypto Patel considers a sharper correction, with a possible drop to US$ 1.800 before a potential rise to US$ 5.000.

The positive outlook is also supported by fundamentals such as the growth of applications with artificial intelligence, inflows to crypto ETFs, and technical advancements in the Ethereum network, including the Pectra update.

However, the drop of the RSI from 60 to 42 indicates an increase in profit-taking. If the price closes below US$ 2.470, further declines may occur, with supports at US$ 2.400 and US$ 2.300.