Ethereum Price Soars 44% in May: Breakout or Bull Trap?

Ethereum (ETH) has surged 44% since early May, marking a dramatic turnaround after a grueling 145-day decline. The price rebounded from around $1,800 to over $2,600, breaking through key technical levels, including the 50-day, 100-day, and 200-day exponential moving averages (EMAs). This rapid ascent, backed by strong trading volume, signals renewed bullish sentiment and organic buying interest.

The breakout gained momentum on May 8, following weeks of sideways movement. The ability to clear the psychologically significant 200 EMA—now sitting near $2,430—strengthened the case for a medium-term trend reversal. Traders view this as a major shift in momentum after months of bearish pressure.

However, the rally may be entering a cooling-off phase. Ethereum has printed its first red daily candle in the current uptrend, accompanied by heightened sell volume. Additionally, the Relative Strength Index (RSI) has breached the 79 level, indicating overbought conditions and increasing the likelihood of a short-term pullback.

Despite this, the broader uptrend remains intact. A potential retest of the 200 EMA could act as a solid support zone, offering a foundation for another leg higher—possibly toward the $3,000 psychological resistance. While enthusiasm is returning to the ETH market, experts warn against overly aggressive buying at current levels without confirmation of continued strength.

Short-term caution is warranted, but Ethereum bulls finally have a reason to be optimistic after months of downward pressure. A healthy consolidation here could serve as a launchpad for the next major rally in ETH’s price action.