ETH 2500 Steadily Reaching a New High is Just Around the Corner

The following is an analysis of the viewpoint that 'ETH Ethereum is expected to reach a new high of 2500 at night':

Supporting Factors

- Technical Upgrades and Ecological Development: Ethereum's technical upgrades, such as the Pectra upgrade, will increase the staking volume, data capacity, and scalability, making it a high-throughput, low-cost smart contract platform. Its unparalleled ecosystem controls over half of the total value locked in DeFi, and the layer two networks continue to expand, establishing a solid foundation. With the widespread adoption of DeFi, NFTs, and Web3, the demand for ETH may further increase.

- Institutional Entry and Capital Inflow: Ethereum ETFs may be approved, and the crypto-friendly U.S. Securities and Exchange Commission (SEC) in 2025 will increase institutional adoption. Major players like BlackRock will continue to increase their tokenization efforts. BlackRock's iShares Ethereum Trust (ETHA) has maintained net inflows for 23 consecutive trading days and recently increased its holdings of Ethereum by $500 million, indicating institutions' long-term bullish outlook on ETH.

- Market Sentiment and Technical Analysis: Some market analysts believe that Ethereum will experience a significant increase in 2025. From a technical analysis perspective, the rapid rise of ETH from May 8 to May 10 formed a 'three consecutive bullish candles' technical pattern, which is usually a strong bullish signal. Additionally, the ETH/USD hourly chart shows that a key bullish trend line is forming, with support at $2540.

Uncertain Factors

- Short-term Technical Indicators and Market Sentiment: ETH is currently in a high-level consolidation phase, and technical indicators need to be repaired. The Relative Strength Index (RSI) continues to trend sideways near the overbought area, indicating that bullish momentum is slightly weakening. Market sentiment towards ETH is relatively complex, and investor confidence may be shaken by recent declines.

- Macroeconomic Factors and Industry Competition: The uncertainty of global trade disputes has raised recession risks, which could affect the overall performance of the cryptocurrency market and put pressure on ETH's price. Additionally, the development of competitive public chains poses a certain competitive pressure on Ethereum.

In summary, there is a certain possibility that ETH Ethereum will reach a new high of 2500 at night, but it faces many uncertain factors, and investors should proceed with caution.