Ethereum Poised for 27.36% May Surge Driven by ETF Inflows and Pectra Upgrade
2min read Ethereum, the second-largest cryptocurrency by market capitalization, is poised for a significant price surge in May. Historically, May has been a favorable month for Ethereum's price performance, and this year is no exception. The cryptocurrency is on track for a $2,000 breakout, driven by several key factors.
One of the primary drivers is the influx of capital into Ethereum-based exchange-traded funds (ETFs). This influx has provided a substantial boost to Ethereum's price, as investors seek exposure to the growing decentralized finance (DeFi) ecosystem built on the Ethereum blockchain. The upcoming Pectra upgrade, which aims to enhance the network's scalability and security, is also expected to contribute to the price rally.
Ethereum’s Taker Buy-Sell Ratio has climbed to 1.10, marking its highest level in 2025 so far. This indicates that buyers are increasingly aggressive, dominating the futures market. The surge reflects growing confidence among traders, signaling strong conviction in ETH’s upward momentum. Notably, this spike aligns with ETH maintaining levels above $1,800, even as broader market sentiment remains cautious. The last time the Taker Buy-Sell Ratio reached similar levels was early January, just before a brief rally. This time, however, key factors point to a potentially stronger breakout. ETH has established a stable price floor, and historical seasonality favors upward momentum. These elements suggest the possibility of a more sustained price surge.
According to Coinglass data, May has historically been Ethereum’s best-performing month, with an average return of 27.36% across the calendar year. The median return of 6.96% further supports this trend, highlighting standout gains in 2017, 2019, and 2021. While recent years have shown mixed results, 2023 posted a modest 2.44% increase. Despite this, May remains known for strong upside momentum, making it a closely watched period for ETH traders.
At $1,819, ETH traded above the key $1,800 support at press time, with a mild upward bias. The RSI at 55 showed moderate bullish momentum, neither overbought nor oversold. More notably, the MACD remained in positive territory with a widening gap between the MACD and signal lines, hinting at sustained upward pressure. However, recent intraday momentum loss and flat trading volume signal caution for ETH bulls. To reignite upward movement, buyers must secure a strong hold above $1,850. This level is crucial for building momentum toward the $2,000 psychological barrier. For now, Ethereum appears to be consolidating, awaiting either a macro trigger or a surge in breakout volume to drive its next move.
In conclusion, May could be Ethereum's best month yet, with the cryptocurrency poised for a significant price surge driven by ETF inflows, DeFi growth, and the upcoming Pectra upgrade. While the price may experience short-term corrections, the overall uptrend remains intact, and Ethereum is on track for a $2,000 breakout. 
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