Ethereum (ETH) has delivered a 37.7% gain over the past month, but it still trades more than 33% below its June 2024 highs. Now, with technical indicators flashing bullish signals and institutional momentum building, some analysts believe a breakout rally may be underway.
🌅 Bullish Morning Star Pattern Forms on Monthly Chart
According to popular crypto trader Merlijn The Trader, Ethereum has just printed a Morning Star candlestick pattern on its monthly chart—an indicator traditionally associated with strong bullish reversals after downtrends.
This three-candle formation includes:
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A large bearish candle
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A small-bodied candle of indecision
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A strong bullish candle that closes deep into the first candle’s body
Technical analysts view this as a reliable early signal for trend reversals, often marking the start of sustained price momentum.
💼 Institutional Inflows into ETH ETFs Surge
Beyond chart patterns, institutional interest in Ethereum is accelerating. According to CoinShares, crypto investment products recorded $286 million in net inflows during the final week of May 2025. Ethereum-based ETPs were a major contributor.
SoSoValue data shows $564 million in net inflows to spot Ethereum ETFs in May—up from just $66 million in April. This surge highlights renewed investor confidence in Ethereum’s long-term value.
🔒 Ethereum Staking on the Rise
Ethereum’s proof-of-stake model continues to attract large-scale stakers. On-chain data revealed that Abraxas Capital staked $7.5 million worth of ETH earlier this week. ETH staking rewards offer investors passive yield while contributing to network security and transaction validation.
📊 Analysts Eye $2,650 and $3,800 as Key Targets
Crypto analyst Ali Martinez emphasized that holding above $2,550 is critical for ETH to maintain its bullish setup. If this level holds, a move to $2,650 is the next likely step.
Meanwhile, Titan of Crypto suggested that ETH could rally as high as $3,800, supported by a bullish flag breakout on the daily chart and strong price action above the 200-day EMA—a historically bullish trend indicator.
📉 Supply Crunch: Binance ETH Withdrawals Spike
Adding fuel to the bullish thesis, nearly 300,000 ETH has been withdrawn from Binance between mid-April and mid-May, indicating reduced exchange supply and potential upward pressure on price.
At the time of writing, Ethereum is trading at $2,538, with a daily gain of 0.8%. If market structure remains intact, ETH could be gearing up for its next major breakout phase.