Ethereum (ETH), the second-largest cryptocurrency by market capitalization, may be poised for a strong rebound in May, according to analysts who point to four key factors driving bullish sentiment. Following months of subdued price action, these indicators suggest that Ethereum could be entering a recovery phase — potentially igniting a new wave of investor interest.
1. Strong Historical Performance in May
Seasonality appears to be on Ethereum’s side. Historically, May has been one of ETH’s best-performing months, with average returns far exceeding most other periods of the year. According to market data, Ethereum has delivered positive gains in the majority of previous Mays, often with double-digit returns. This seasonal trend is encouraging for bulls who see a repeat pattern unfolding in 2025.
Ethereum’s Monthly Price Performance. Source: Coinglass
“May is historically the best month for ETH. $2,500 by the month’s end,” analyst Cyclop predicted.
2. Undervalued MVRV Ratio Suggests Buying Opportunity
On-chain metrics reinforce the bullish case, particularly the MVRV (Market Value to Realized Value) ratio. The MVRV ratio compares Ethereum’s current market price with the average price at which coins last moved on-chain. A low or negative MVRV typically indicates that holders are in a loss position — a condition that often precedes upward price corrections.
As of early May, ETH’s MVRV ratio is at its lowest level since March 2020, suggesting the asset may be significantly undervalued. Historically, such MVRV lows have coincided with favorable entry points and subsequent price rallies.
Ethereum MVRV. Source: Glassnode
3. Whale Accumulation Signals Confidence
Large holders — often referred to as “whales” — have been quietly accumulating ETH over recent weeks. On-chain data shows that Ethereum addresses holding more than 10,000 ETH have increased their balances by more than 22% since March. This trend signals growing confidence from deep-pocketed investors, who often act as market bellwethers.
Whale accumulation tends to precede bullish breakouts, as their activity can tighten supply and increase buying pressure.
4. Pectra Upgrade Set to Boost Network Performance
Another major catalyst for Ethereum’s potential rebound is the upcoming Pectra network upgrade, scheduled for May 7, 2025. The upgrade is expected to deliver significant improvements in scalability, transaction efficiency, and user experience, making Ethereum more competitive in the layer-1 smart contract space.
Market participants are optimistic that Pectra will not only enhance Ethereum’s technical capabilities but also strengthen its position against rising competitors. Major upgrades in the past, such as the Merge and Shanghai, have historically sparked investor interest and upward price movement.
ETH Outlook: A Perfect Storm for Recovery?
With a combination of favorable seasonal patterns, strong on-chain signals, increasing institutional accumulation, and a high-profile upgrade around the corner, Ethereum appears well-positioned for a potential rebound this May. While no forecast is guaranteed, these converging factors provide a strong case for bullish momentum in the near term.
As of today, Ethereum is trading at approximately $1,824, with investors closely watching how these catalysts unfold over the coming weeks.