Ethereum has surged 42% in a week, now testing major resistance at $3,100.
Institutional accumulation and Ethereum ETF momentum support a bullish outlook.
Network upgrades like EIP-4844 and Pectra enhance scalability and investor confidence.
Ethereum (ETH) has experienced a notable resurgence in May 2025, with its price climbing approximately 42% over the past week to trade around $2,580. This upward momentum is attributed to a combination of technical factors, institutional interest, and positive market sentiment.
Ethereum price action has brought it close to a critical resistance level at $3,100. This level is identified by the Market Value to Realized Value (MVRV) pricing bands as a significant barrier that could influence the asset's short-term trajectory . A successful breakout above this resistance could pave the way for further gains, potentially targeting the $3,900 to $4,000 range.
On the downside, support is observed around the $2,233 level, which may serve as a foundation for price consolidation or a potential rebound in case of a pullback . The current trading range between these support and resistance levels is likely to dictate Ethereum price movements in the near term.
Institutional interest in Ethereum has been on the rise, with significant inflows into Ethereum-based exchange-traded funds (ETFs). Notably, a London-based asset management firm recently acquired approximately $561 million worth of ETH, signaling strong confidence in the asset's future prospects.
The approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) in July 2024 marked a pivotal moment for institutional adoption. These ETFs have accumulated substantial assets under management, contributing to increased demand for ETH . Analysts suggest that continued growth in ETF inflows could drive Ethereum's price toward the $5,000 mark by the end of 2025.
Ethereum's ongoing network upgrades have enhanced its scalability and efficiency, further bolstering investor confidence. The recent Pectra upgrade introduced features aimed at improving transaction throughput and reducing fees, which are essential for supporting the growing decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.
Additionally, the implementation of EIP-4844 (Proto-Danksharding) has facilitated more cost-effective data availability solutions, benefiting Layer 2 networks and contributing to the overall health of the Ethereum ecosystem.
Market sentiment surrounding Ethereum remains bullish, with analysts projecting potential price targets ranging from $4,392 to $5,925 by the end of 2025, contingent on favorable market conditions and continued network growth. The combination of technical strength, institutional adoption, and ongoing protocol enhancements positions Ethereum as a leading asset in the cryptocurrency market.
However, investors should remain cautious of potential volatility and monitor key support and resistance levels closely. The ability of Ethereum to sustain momentum above the $3,100 resistance will be a critical factor in determining its short-term trajectory and the likelihood of achieving higher price targets in the coming months.