Ethereum (ETH) has recorded an impressive 37.7% profit in the past month, but the second largest cryptocurrency by market capitalization is 33% below the level in June 2024. However, recent technical and chain metrics suggest that ETH may be on the critical breakout crisis.
Ethereum prints bullish morning star candlestick pattern
In today’s X post, Crypto Trader Merlijn The Trader highlighted the potential bullish development of Ethereum Monthly Chart. According to Merlijn, ETH printed the Morning Star candlestick board pattern – often considered a strong bull inversion signal.
For beginners, the Morning Star is a bullish reversal pattern that appears after a downtrend, indicating a potential shift to upward momentum. It consists of a big bearish candle, a small candle indicating indecisiveness, and a strong bullish candle that closes well in the body of the first candle.
Beyond technical indicators, Ethereum also sees growing interest from institutional investors. A recent Coinshares report revealed that global crypto exchange sales products (ETPS) saw a net inflow of $286 million in the week ending May 30th.
Data from Sosovalue further confirms this momentum. In May 2025 alone, the Spot Ethereum Exchange-Traded Funds (ETF) recorded a total net inflow of $564 million, a sharp increase from $66 million in April.
Furthermore, more and more entities continue to bet ETH on their networks. In another X-Post, Crypto analyst Ted Pillows It is outlined How Abraxas Capital bets $7.5 million worth of ETH today.
To remind you, Ethereum staking helps lock ETH to secure the Ethereum network and validate transactions, which are the core part of the consensus mechanism of its proof. In return, stakers earn rewards that are normally paid in ETH to participate in network operations.
It is important to maintain this level of support.
Veteran Crypto-Ali Martinez Emphasised Note that the importance of the $2,550 support level must be kept above this threshold in order to maintain its bullish momentum. If so, Martinez predicts possible pushes towards the $2,650 level.
In line with this sentiment, fellow analyst Titan’s crypto Proposed That ETH may be gearing up for a run up to $3,800, citing a breakout from the bullish flag pattern on the daily chart. Analysts also pointed out that ETH is now Hold Often the signal continues to move upward.
In addition to the bullish case, there are around 300,000 ETHs left Two-way between mid-April and mid-May could contribute to the supply crunch. At the time of writing, ETH is trading at $2,538, an increase of 0.8% over the past 24 hours.
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