Ethereum, the second largest cryptocurrency by market capitalization, may be poised for a strong rebound in May due to several key factors driving bullish sentiment in the market.
Strong Historical Performance in May
Historically, May has been one of Ethereum's most successful months, with positive performance in the majority of past years. Market analysis indicates that Ethereum often outperforms in this month significantly compared to others. Analysts like Cyclop predict that ETH could reach $2500 by the end of the month.
Undervalued MVRV Ratio Signals Buying Opportunity
On-chain metrics bolster bullish sentiment, particularly the MVRV (Market Value to Realized Value) ratio. A low MVRV indicates that many holders are at a loss, which often precedes price corrections. Currently, Ethereum's MVRV ratio is the lowest since March 2020, suggesting favorable entry points may be possible.
Whale Accumulation and Upcoming Upgrade
Large investors, commonly referred to as 'whales', have been quietly accumulating ETH recently. Data shows that addresses holding more than 10,000 ETH have increased their balances by more than 22% since March. The upcoming Pectra network upgrade, scheduled for May 7, 2025, is expected to further enhance Ethereum's performance and competitiveness in the smart contract space.
With favorable seasonal trends, strong market signals, and significant upgrades on the horizon, Ethereum appears well-positioned for a potential rebound in May. The current trading price of ETH is approximately $1,824.
