Ethereum (ETH) posted a strong rebound on May 25 after successfully defending the critical support level at $2,477. The recovery has been attributed to a surge in trading volume, renewed ETF optimism, and improving market sentiment, setting the stage for a potential breakout above the $2,530 resistance zone.
ETH is currently trading at $2,519, up 3.1% in the last 24 hours, marking its highest level this week.
The move comes after a period of consolidation and signals a potential shift in momentum favoring bulls.
Strong Inflows into Ethereum ETFs Boost Confidence
One of the major catalysts behind Ethereum’s bounce is the continued inflow into spot Ethereum ETFs, particularly in regions like Canada and Europe, where such products are already live.
“ETF inflows have hit a 3-month high,” reported BlockMatrix Analytics, “with ETH-focused funds seeing over $110M in net inflows this week alone.”
These inflows suggest that institutional interest is growing, particularly ahead of expected ETF approvals in the U.S. by Q3 2025.
Technical Analysis: Bulls Target $2,530 Breakout
From a technical perspective, Ethereum’s recent surge came after it respected the $2,477 support level, forming a strong base amid rising volume.
A break above $2,530 could trigger a fresh rally toward the $2,620–$2,650 resistance range.
The Relative Strength Index (RSI) has crossed back above 50, indicating bullish momentum, while the MACD has turned positive for the first time in a week, confirming upward price pressure.
Volume levels are 37% above the 7-day average, suggesting that this rally has strong backing from market participants.
Warning Signs to Watch
Despite the bullish move, traders are advised to stay cautious. Exchange reserves of ETH have been climbing, signaling that some holders may be preparing to sell into strength.
“We see increased ETH deposits on exchanges, often a prelude to short-term profit-taking,” said analyst Mark Li from CryptoQuant.
Moreover, Layer 2 activity, particularly on networks like Arbitrum and Optimism, has slowed slightly, which may impact Ethereum’s broader ecosystem usage metrics in the near term.
Will Ethereum Hold Momentum?
With ETF inflows rising, technical indicators turning positive, and key support levels holding, Ethereum appears poised for further upside. However, sustained momentum will depend on macro conditions, Bitcoin’s stability, and continued institutional accumulation.
Immediate resistance: $2,530. Major breakout target: $2,650. Support to watch: $2,477.