Ethereum (ETH) has declined for five consecutive months but enters May with rising optimism. Historical trends, on-chain data, whale accumulation, and upcoming upgrades form a strong foundation for a potential rebound.
Here’s why analysts predict a strong ETH recovery in May 2025:
1. Historical May Performance Favors ETH
Data reveals May as ETH’s best-performing month historically, with an average return of 27.36%. While past performance doesn’t guarantee future results, this trend aligns with current bullish sentiment.
"May is historically the best month for ETH. $2,500 by month’s end," predicts analyst Cyclop.
2. On-Chain Data Signals Undervaluation
ETH’s MVRV ratio (Market Value to Realized Value) is at its lowest since March 2020, indicating undervaluation. This rare signal has preceded major recoveries in the past, suggesting potential growth within 3–12 months.
👉 Why MVRV matters for crypto investors
3. Whales Accumulate ETH Despite Downturn
Whale addresses increased ETH holdings by 22.54% between March and May, even at unrealized losses. This accumulation reflects long-term confidence in Ethereum’s ecosystem.
"ETH investors demonstrate structural conviction in the asset’s evolution," notes analyst Carmelo_Alemán.
4. Pectra Upgrade & Macro Catalysts
The Pectra upgrade (May 7, 2025) aims to enhance wallet usability, potentially boosting dApp adoption. Concurrently, the Fed’s FOMC meeting could amplify ETH’s momentum if macroeconomic conditions favor risk assets.
FAQ Section
Q: How reliable is ETH’s historical May performance?
A: While not foolproof, 7 of the past 10 Mays saw positive returns, making it a statistically significant trend.
Q: What does a low MVRV ratio indicate?
A: It suggests ETH is undervalued relative to its on-chain activity, often preceding price recoveries.
Q: How might the Pectra upgrade impact ETH’s price?
A: Improved usability could drive higher adoption, increasing demand for ETH long-term.
👉 Explore Ethereum’s latest upgrades
Key Takeaways:
- May’s historical trends and whale accumulation signal bullish potential.
- Technical upgrades and macro events could act as catalysts.
- Always conduct independent research before investing.