Ethereum’s price may rebound strongly in May due to historical trends, positive on-chain data, increased whale accumulation, and an upcoming major upgrade. Historically, May has seen strong price performance, and a low MVRV ratio indicates potential undervaluation. Furthermore, whales are acquiring more ETH, and the Pectra upgrade could enhance usability and demand. Macro factors also play a critical role.
Ethereum (ETH) has faced a rough patch, experiencing declines for five consecutive months. However, as May rolls in, there’s a sense of renewed optimism amongst analysts. Several factors are at play: historical price trends, on-chain analytics, the behaviour of large investors or whales, and significant upcoming upgrades that may pave the way for a possible price bounceback. Here’s a closer look at four reasons why experts reckon ETH could regain its footing this month.
First off, let’s consider ETH’s historical performance. According to data from CoinGlass, May has historically been a strong month for the cryptocurrency. Data reveals that on average, ETH has delivered returns of around 27.36% in May, ranking it as the top month in terms of performance across the year. While not every May yields profits, the patterns observed suggest that the month brings with it a wave of positive sentiment. Analyst Cyclop is optimistic, predicting there’s potential for ETH to push past the $2,500 mark by month’s end.
Next on the list is on-chain data analysis, particularly the Market Value to Realised Value (MVRV) ratio which presents an intriguing narrative. Analyst Michaël van de Poppe points out that ETH’s MVRV is currently sitting at its lowest level since March 2020—a time when the crypto sphere was shaken by the pandemic’s onset. A low MVRV ratio typically signals that ETH is underpriced compared to its on-chain value, and this particular indicator has only shown up six times in the last decade. Historically, such occurrences have often preceded notable recoveries, hinting that growth could be on the horizon within the next 3 to 12 months.
Moving on to another key factor: whale accumulation activity. According to insights from CryptoQuant, large investors haven’t retreated from the market despite ETH’s price descent. Instead, they have ramped up their holdings, showing a certain level of confidence. On March 10, these accumulation addresses possessed around 15.5356 million ETH, but by May 3, that figure surged to 19.0378 million ETH—a jump of 22.54%. As analyst Carmelo Alemán notes, this trend reflects a persistent belief in ETH’s long-term value and aligns well with Ethereum’s developmental trajectory.
Lastly, there’s the highly anticipated Pectra upgrade coming up on May 7, 2025. This launch is expected to enhance wallet usability and user experience, potentially driving greater adoption of decentralised applications (dApps) and increasing long-term demand for ETH. It’s also worth noting that this date coincides with the Federal Open Market Committee (FOMC) meeting, where the Fed will announce its interest rate decision. Positive macroeconomic news could further bolster ETH’s prospects this month, but adverse news may counteract that potential, making this a rather uncertain yet intriguing outlook for Ethereum in May.
