TLDR
- Ethereum price recently increased above $2,720 before correcting, with support at around $2,500
- ETH is trading above $2,520 and the 100-hourly Simple Moving Average
- Analysts suggest ETH could reach $5,000 in 2025 if certain conditions are met
- A bullish flag pattern is forming with resistance at $2,630
- US-listed Ether ETFs saw net outflows of $4 million between May 12-13
Ethereum price has shown resilience in recent days, making a fresh increase above the $2,720 resistance level. While the second-largest cryptocurrency is now correcting gains and might revisit the $2,500 support zone, many market participants see this as a potential buying opportunity.
The price is trading above $2,520 and the 100-hourly Simple Moving Average, indicating that bulls remain active despite the recent dip.
Technical analysis shows a short-term declining channel or a possible bullish flag forming with resistance at $2,630 on the hourly chart of ETH/USD.
The cryptocurrency recently outperformed Bitcoin during its upward movement, with bulls pushing the price above the $2,700 resistance zone. A high was formed at $2,736 before the current correction began.
Ethereum has dipped below $2,650 and even moved below the 50% Fibonacci retracement level of the upward move from the $2,415 swing low to the $2,736 high.
On the upside, Ethereum price is facing hurdles near the $2,620 level. If the cryptocurrency manages to break above this resistance, the next key resistance is near $2,680.
A clear move above the $2,720 resistance might send the price toward the $2,820 resistance. Should Ethereum break above $2,820, it could see further gains toward $2,880 or even $2,950 in the near term.
The greater the price gap between BTC and ETH, the greater the potential alpha for investors allocating to ETH, especially when ETH is heavily shorted.
Here’s the context you need to understand:
ETH remains the second largest crypto asset and is the only one with similar levels…
— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) May 12, 2025
Long-Term Price Potential
Some analysts believe that Ethereum’s current bullish momentum is just the beginning of a larger uptrend that could potentially take the price to $5,000 in 2025.
This projection depends on several key factors. First, SEC approval of in-kind ETF creation and staking would likely attract more institutional investors.
Between May 12 and May 13, US-listed Ether ETFs saw net outflows of $4 million. The market size for Ether ETFs is currently 92% smaller than Bitcoin’s $121.5 billion, showing limited institutional interest so far.
Ethereum may benefit from a lack of direct ETF competition if the SEC rejects several pending applications for other cryptocurrencies.
AI adoption represents another potential growth catalyst. Observers have noted that AI applications like ChatGPT show preference for Ethereum’s layer-2 infrastructure for managing funds via multisignature contracts.
The recent Pectra upgrade has improved data transmission efficiency and scalability. Layer-2 network activity rose 23% compared to the previous month, with the Base network leading with 244.2 million transactions in 30 days.
If this momentum continues, it could generate sustained demand for ETH and help differentiate Ethereum from competing platforms.
On the downside, if Ethereum fails to clear the $2,630 resistance, it could start a fresh downside correction. Initial support is near $2,575, with major support at the $2,500 zone.
A clear move below $2,500 might push the price toward $2,420. Any further losses could send the price toward $2,350, with the next key support at $2,320.
Technical indicators show the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI is now below the 50 zone.
For now, most traders are watching key resistance levels around $2,630 and $2,720, which could determine whether Ethereum resumes its uptrend or continues its correction in the coming days.
The cryptocurrency’s recent price action represents the latest chapter in its volatile history, with current levels still well below its all-time high of $4,868 reached in 2021.
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