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May 22, 2025

Stocks

Ethereum (ETH) Market Update – May 22, 2025

Summary

  • Current price: ~$2,679
  • 24-Hour Change: +5.9%
  • Trend: Bullish
  • Momentum Indicators:
    • Trading above 50-day moving average
    • RSI in bullish territory, supporting continued upside
  • Key Resistance Levels:
    • $2,950: Immediate hurdle; a breakout here may trigger accelerated buying
    • $3,000: Psychological resistance and likely institutional target
    • $4,800: Previous all-time high and long-term bullish objective
  • Key Support Levels:
    • $2,250: Strong technical base; a breakdown could signal short-term weakness
    • $2,000: Psychological support and long-term trendline area

The bullish structure remains intact unless price breaks below $2,250. A sustained move above $2,950 could open the path to $3,000+.

Fundamental Factors Affecting Ethereum

  • Pectra Upgrade:
  • Ethereum's successful Pectra upgrade improved scalability and reduced gas costs, bolstering investor confidence and reinforcing Ethereum's dominance in smart contract infrastructure.
  • Whale Accumulation:
  • Large holders have accumulated 670,000 ETH in the last 9 days, suggesting institutional positioning ahead of a potential breakout.
  • Broader Crypto Sentiment:
  • A rebound in overall market risk appetite, improving macro sentiment, and optimism about decentralized finance (DeFi) recovery continue to support ETH's upward momentum.

Key Takeaway for Traders

Ethereum is riding a wave of technical and fundamental strength, with whale accumulation and infrastructure upgrades adding to bullish sentiment. A breakout above $2,950 could lead to rapid gains toward $3,200–$3,500, with a longer-term view targeting $4,800. On the downside, a drop below $2,250 would weaken the outlook and shift attention to $2,000.

Watch for:

  • Price action near $2,950
  • On-chain activity and gas fees post-Pectra
  • Institutional buying signals and ETF news

ETHUSD – H4 Timeframe

ETHUSDH4.png

ETHUSD's price action broke above the previous high of the internal structure right after a rejection from the demand zone and the trendline support. The current momentum has also broken through a resistance trendline, creating a new demand zone – a rejection from the new area of demand is the required trigger to confirm the bullish sentiment.

Analyst's Expectations: 

Direction: Bullish

Target- 2721.62

Invalidation- 2295.27

CONCLUSION

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Trading foreign currencies on margin involves significant risks and may not be suitable for everyone, as high leverage can increase both potential gains and losses. Before entering the foreign exchange market, it is essential to evaluate your investment goals, personal experience, and risk tolerance.

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Adetola-Freeman Ogunkunle

Author: Adetola-Freeman Ogunkunle

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