Ethereum’s price momentum is reigniting in May, with a notable rebound from the $2,400 support level sparking renewed optimism among traders. After dipping to $2,400 on May 17, ETH surged above $2,550 within 24 hours, fueling speculation that a move toward $3,000—and beyond—could be on the horizon. This resurgence not only triggered over $22 million in short liquidations but also reinforced bullish technical patterns suggesting further upside potential.
Key Market Movements and Liquidation Trends
On May 18, Ethereum climbed over 3%, reaching $2,551 and reclaiming the psychologically significant $2,500 mark. The rally coincided with a wave of short squeezes across the crypto market. According to data from CoinGlass, approximately $7.5 million in ETH short positions were liquidated within just one hour—a clear signal that bearish bets were caught off guard by the sudden reversal.
In total, more than $22.25 million in ETH short positions were wiped out over the past 24 hours. Meanwhile, the broader crypto market saw over $158 million in leveraged positions liquidated, with $95 million coming from long positions. This highlights a volatile but balancing phase where both over-leveraged bulls and bears are being shaken out.
👉 Discover how real-time market data can improve your trading strategy.
Despite this rebound, resistance looms ahead. Multiple sell-order clusters are visible between current prices and the $3,000 mark, totaling over $384 million in cumulative sell-side interest. This indicates that while momentum is building, ETH may face stiff headwinds as it approaches key psychological and technical resistance zones.
Technical Indicators Signal Continued Bullish Potential
Market analysts are closely monitoring Ethereum’s technical structure for clues about its next major move. One of the most compelling patterns currently in play is the bullish flag formation visible on the four-hour chart.
The pattern was confirmed on May 13 when ETH broke above the upper trendline at $2,550. Since then, price has been retesting the former resistance-turned-support level around $2,470. As long as daily closes remain above this threshold, the path remains open for a continuation rally targeting the measured move objective of $3,720—a potential 50% upside from recent levels.
However, not all indicators point upward. The Relative Strength Index (RSI) dipped from 60 to 42 over the past day, suggesting cooling momentum and possible consolidation. A daily close below $2,470 could invalidate the bullish setup and open the door to further downside tests at $2,400 or even $2,300—the lower boundary of the flag.
Analyst Insights: Is a Deeper Correction Possible?
While many see the current pullback as a healthy correction, some analysts caution that Ethereum might not be done with downside volatility just yet.
Chimp of the North, a well-known technical analyst, suggests that ETH could retest the $2,400 support before launching its next leg up. This level aligns with previous swing lows and strong on-chain demand zones, making it a logical area for accumulation before another rally toward $3,000–$3,300.
Meanwhile, Crypto Patel presents a more bearish near-term scenario, projecting a potential drop to $1,800 before a decisive bull run resumes.
"If we find strong buying pressure around $1,800, that could become a high-probability entry zone for long-term investors," Patel noted on X. "A confirmed bounce from there could ignite a new wave pushing ETH toward $4,000 or even $5,000."
This view implies that while short-term pain is possible, the long-term trajectory remains bullish—especially if macro conditions and on-chain fundamentals improve.
On-Chain and Fundamentals Driving Future Growth
Beyond price action, several fundamental catalysts could propel Ethereum toward new all-time highs in 2025:
- AI Integration: Growing adoption of AI-driven decentralized applications (dApps) on Ethereum could increase network usage and transaction volume.
- Pectra Upgrade: The upcoming Pectra protocol upgrade aims to enhance scalability, improve wallet usability via account abstraction, and boost staking efficiency—key upgrades that could attract institutional capital.
- Spot ETF Inflows: Although delayed compared to Bitcoin, growing speculation around a potential U.S.-based Ethereum spot ETF continues to build investor confidence.
These developments suggest that Ethereum's value proposition extends beyond speculative trading—it's increasingly becoming a foundational layer for next-generation financial infrastructure.
👉 Stay ahead of major crypto upgrades and market-moving events.
Frequently Asked Questions (FAQ)
Q: Can Ethereum reach $3,000 in May 2025?
A: While not guaranteed, technical indicators such as the bullish flag pattern and strong short squeeze activity suggest that a move toward $3,000 is within reach if ETH holds above $2,470.
Q: What are the key support levels to watch for ETH?
A: The immediate support sits at $2,470 (flag boundary). Below that, $2,400 is critical; further downside could target $2,300 or even $1,800 in a worst-case scenario.
Q: What causes short squeezes in crypto markets?
A: Short squeezes occur when rising prices force leveraged traders who bet on declines to close their positions, amplifying upward momentum—often leading to rapid price spikes.
Q: How does the Pectra upgrade benefit Ethereum?
A: Pectra improves user experience through account abstraction, enhances staking mechanisms, and increases network efficiency—potentially boosting adoption and security.
Q: Is Ethereum still a good long-term investment?
A: Many analysts believe so. With ongoing protocol improvements, strong developer activity, and increasing institutional interest, ETH maintains strong fundamentals for long-term growth.
Q: Where can I track real-time liquidations and order book depth?
A: Platforms like OKX offer advanced analytics tools that display live liquidation data, order book heatmaps, and funding rates—critical for informed trading decisions.
Core Keywords: Ethereum price prediction 2025, ETH price forecast, Ethereum bull flag, ETH to USD, Ethereum Pectra upgrade, ETH short squeeze, Ethereum technical analysis, can ETH reach $3000
👉 Access advanced charting tools and real-time ETH market analytics today.