Ethereum remains poised for a potential upward breakout after consolidating sideways following a strong surge earlier in May. Currently trading around $2,630, Ethereum has held within this range throughout the past month, approximately 90% above its lowest point of the year.
Recent market data indicates increasing demand from Wall Street investors, highlighted by continued inflows into Ethereum-based spot exchange-traded funds (ETFs). These funds registered inflows of $56.9 million on Wednesday, marking the 13th consecutive day of positive inflows. This trend has been consistent for over three months, underscoring growing institutional confidence in Ethereum.
Fundamentally, Ethereum continues to dominate key sectors of the blockchain ecosystem. In the real-world assets (RWA) market, Ethereum now accounts for over $7.37 billion of the total $23 billion market, significantly surpassing its closest competitors including ZKsync Era, Stellar, and Solana.
Additionally, Ethereum maintains its leading position in the stablecoin industry with over $129 billion of assets hosted on its blockchain, ahead of other networks such as Tron, Solana, and Arbitrum. This dominance extends into tokenized treasury products and the burgeoning tokenized private-credit segment.
Furthermore, Ethereum stands out in decentralized finance (DeFi), commanding over $133 billion in total value locked. With a DeFi market dominance of approximately 62%, Ethereum far outpaces competitors like Solana and Tron.
From a technical perspective, Ethereum’s price chart has displayed multiple bullish configurations that support expectations of an eventual upward move. One particularly notable pattern is a clear “cup and handle” formation, facing a resistance around the $2,795 mark, which aligns with the 50% Fibonacci retracement level. This formation, characterized by its U-shaped “cup” followed by a slight downward drift forming the “handle,” typically signals bullish momentum ahead if resistance levels are decisively breached.
Moreover, Ethereum recently triggered a “golden cross,” where its 50-day weighted moving average crossed above its 200-day weighted moving average. Historically, golden cross patterns have preceded substantial price rallies; notably, Ethereum last experienced this in November 2024, which was followed by nearly a 40% gain.
Additionally, Ethereum’s chart currently displays a bullish flag pattern—an upward surge in prices, followed by a short rectangular consolidation period—typically signaling a continuation of the preceding upward trend once the consolidation is resolved.
Collectively, these fundamental improvements in investor sentiment, robust network metrics, and clear bullish chart patterns point toward the likelihood of a significant upward price action for Ethereum in the near future.
