Ethereum’s recent price action has sparked renewed optimism among traders and analysts alike, as the cryptocurrency climbed above $2,550 on May 18, marking a 3% increase. This surge has led to a flurry of activity in the markets, with $22 million in short ETH liquidations occurring, and traders eyeing the possibility of Ethereum reaching the $3,000 mark this month.
A Closer Look at the Numbers
The recent rebound has not only buoyed investor sentiment but also highlighted the volatile nature of the crypto markets. Data from Cointelegraph Markets Pro and Bitsamp reveals that Ethereum’s price rose by more than 4.5% to hit an intraday high of $2,551, recovering from a low of $2,440 just the day before. Such rapid movements have caught many short traders off guard, resulting in significant liquidations across the board.
CoinGlass reports that over the past 24 hours, more than $158 million in leveraged crypto positions have been liquidated, with $95 million of that being long liquidations. Among these, short Ether liquidations alone accounted for $22.25 million, with a notable $7.5 million wiped out in just a single hour. As one might expect, these figures have caused quite a stir among traders. As explored in our recent coverage of Ethereum bulls showing interest as traders’ confidence in ETH’s $1.8K level improves, the market’s resilience at lower levels is a key factor in this dynamic.
Technical Indicators and Market Sentiment
The buzz surrounding Ethereum’s potential climb doesn’t stop there. Analysts point to technical factors bolstering the case for further gains. The weekly Stochastic RSI, currently valued at 79, suggests that ETH still has, as Titan of Crypto puts it, “more gas in the tank” for upward movement. This metric indicates there’s room to grow before hitting overbought conditions, potentially extending the rally for weeks.
Pseudonymous analyst Chimp of the North sees Ethereum’s downside as capped at $2,400, suggesting this level could serve as a strong support before another push toward the $3,000 to $3,300 range. Meanwhile, Crypto Patel forecasts a deeper retracement, potentially dipping to $1,800 before setting the stage for a bullish resurgence. Patel posits that if demand holds at these levels, a move toward $4,000–$5,000 is conceivable.
Bull Flag in Play
From a technical standpoint, Ethereum’s price action continues to exhibit bullish tendencies. The cryptocurrency remains above a bull flag pattern in the four-hour timeframe—a classic setup indicating potential upward momentum. This pattern was confirmed back on May 13 when ETH broke above the $2,550 mark, and now, the asset is testing the upper boundary of the flag at $2,470, acting as immediate support.
Should Ethereum manage a daily close above this level, the path seems clear for a renewed uptrend aiming at the bull flag’s technical target of $3,720—an ambitious 50% increase from current prices. However, a word of caution: the Relative Strength Index (RSI) has dipped from 60 to 42 over the last day, suggesting that the correction might persist if profit-taking gains momentum.
Looking Ahead
As Ethereum hovers in this critical zone, market watchers are left pondering whether this upward trajectory can sustain itself amidst ongoing volatility. While the possibility of ETH reaching $3,000 this month excites many, it remains to be seen if the bulls can maintain their momentum. With market dynamics constantly shifting, traders and investors would do well to stay vigilant. For insights into Ethereum’s future direction, consider Vitalik Buterin’s vision for the platform, as detailed in our coverage of Pectra, Glamsterdam and beyond.
As the crypto community watches these developments unfold, the overarching question lingers: can Ethereum maintain its rally, or will the market’s unpredictable nature throw more curveballs? Only time will tell, and as always, traders are advised to conduct their own research and tread carefully in these turbulent waters.
Source
This article is based on: Ethereum back to $3K in May? Latest rebound says ETH price 'still has more gas'
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
