Ethereum's price rebounded sharply after dipping to $2,400 on May 17, fueling optimism that ETH could surge toward $3,000 and beyond this month. Here's what technical indicators and market analysts suggest about ETH's trajectory.
Key Market Movements
- ETH Price Action: Gained 3% to $2,550 on May 18, triggering $22M in short liquidations
- Bullish Pattern: A "bull flag" formation points to a potential $3,700 target
- Resistance Levels: Significant sell orders ($384M+) cluster between $2,550–$3,000
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Short Squeeze Accelerates ETH's Recovery
ETH's 4.5% rebound from $2,440 surprised bearish traders, with $7.5M in short positions liquidated within one hour. CoinGlass data reveals:
- Total liquidations: $158M (24h period)
- ETH-specific shorts wiped: $22.25M
- Critical support: $2,470 (bull flag boundary)
"The market is shaking out weak hands before the next leg up," notes Titan of Crypto, highlighting ETH's weekly Stochastic RSI (79) suggests remaining upside fuel.
Technical Outlook: Path to $3,000+
Bull Flag Formation Intact
The 4-hour chart shows ETH maintaining its bull flag pattern (confirmed May 13), with:
- Immediate support: $2,470
- Breakout target: $3,720 (50% upside)
- Contingency level: A close below $2,470 may test $2,300
ETH/USD 4-hour chart via TradingView
Analyst Perspectives
- Chimp of the North: Expects retest of $2,400 before rally to $3,000–$3,300
- Crypto Patel: Potential dip to $1,800 could precede a $4,000–$5,000 surge
- Macro catalysts: AI adoption, spot ETF inflows, and Pectra upgrade may drive ETH to $5,000
FAQs: Ethereum's May Price Potential
Q: What's driving ETH's current rebound?
A: Short liquidations, technical support holds, and bullish chart patterns are key factors.
Q: How reliable is the $3,700 bull flag target?
A: While plausible, ETH must hold $2,470 support and break upper resistance at $2,800 first.
Q: Could macroeconomic events derail this rally?
A: Yes—Fed policy shifts or regulatory actions remain risks, but on-chain metrics currently favor bulls.
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With strong technicals and growing institutional interest, Ethereum appears positioned for a May charge toward $3,000—provided key support levels hold firm.