Ethereum Surges 60% in a Month to $2,543 on Investor Accumulation

Generated by AI AgentCoin World
Wednesday, May 21, 2025 1:18 pm ET1min read
ETH
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Ethereum has experienced a significant surge in price, increasing by 60% over the past month to reach $2,543. This rally is driven by substantial accumulation by investors, totaling 1.34 million ETH worth over $3.42 billion. The Pectra upgrade has boosted investor confidence in Ethereum’s long-term growth, contributing to this accumulation.

The drop in Ethereum’s balance on exchanges reflects a growing belief in its upward trajectory. This rush to acquire Ethereum has created a fear of missing out (FOMO) effect, further driving the price rise. However, the macro momentum surrounding Ethereum is mixed, with long-term holders (LTHs) exhibiting cautious behavior. The Age Consumed metric has spiked twice this week, indicating that significant portions of ETH are being sold by

LTHs
to lock in profits. This is the largest wave of selling in the past seven months, suggesting that these holders believe Ethereum may have reached its market top. The sell-off by LTHs draws attention to potential risks that could affect Ethereum’s future performance. If this trend of profit-taking continues, it could hinder the cryptocurrency’s growth prospects.

Ethereum’s price is currently trading at $2,543, marking a 60% rally over the past month. However, the price faces resistance at the $2,654 mark. Breaching this resistance is crucial for Ethereum to continue its rise. The price will likely surge beyond this level if Bitcoin forms a new all-time high (ATH), as Ethereum has a strong correlation with Bitcoin. This move could push Ethereum closer to $3,000, further solidifying its bullish outlook. If the broader market remains positive, Ethereum’s price could see continued upward momentum.

However, the market comes with its risks. If the selling pressure from LTHs intensifies and the accumulation phase halts, Ethereum’s price may struggle to maintain its upward trajectory. Losing support at $2,344 would likely lead to a decline towards $2,141, invalidating the current bullish thesis and creating a bearish outlook for the cryptocurrency.