Ethereum slipped by nearly 5% on May 31, 2025, dropping to $2,630. But despite the pullback, signs of a bullish reversal are emerging, supported by technical signals and heavy accumulation by whale investors.
As the crypto market reacts to broader volatility, Ethereum has outperformed Bitcoin over the past week and now sits on the verge of a possible rally toward the key $3,000 mark.
Ethereum Drops 4.93% Amid Market Volatility
Ethereum fell 4.93%, trading at around $2,630 or IDR 43 million. The 24-hour high stood at IDR 45.2 million, while the low dipped to IDR 42 million, showing significant intraday volatility.
According to CoinMarketCap, Ethereum’s market capitalization currently stands at $317.35 billion, with a 24-hour trading volume of $24.13 billion — up 6%, indicating renewed interest from both retail and institutional traders.
While Bitcoin saw a modest 2% decline during the same period, Ethereum’s deeper correction is now being interpreted by analysts as a potential setup for a breakout, especially with strong technical indicators flashing green.
Bullish EMA Crossover Suggests $3,000 May Be Next
Ethereum’s daily chart has just recorded a bullish crossover between the 20-day and 200-day EMAs, a historically significant signal. This is the first time these two indicators have crossed positively since November 2024.
The last time a similar crossover occurred, ETH surged from $3,100 to $4,000 in less than a month — a 28% rally. If this pattern repeats, Ethereum could reach $3,400 by the end of June 2025.
In addition, the 50-day EMA is converging with the 100-day EMA, reinforcing a strong zone of support. As a result, traders are increasingly eyeing the 123.6% Fibonacci extension level at $3,060, which acts as the next major target above $3,000.
RSI Shows Strength as Buying Pressure Grows
Ethereum’s Relative Strength Index (RSI) has also climbed to 71, which typically indicates strong buying pressure. An RSI above 70 often signals overbought conditions, but in the context of a market turnaround, it can also suggest the start of a bullish breakout.
If momentum continues, Ethereum may climb toward $3,000, then test resistance around $3,400, which corresponds to previous highs and technical targets.
However, if the bullish momentum fades, ETH may retrace to the 78.6% Fibonacci level at $2,440, which now acts as a critical support. A drop below this could invalidate the current upward thesis, especially if buyers fail to step in at those levels.
Whale Investors Accumulate Over 1 Million ETH
A major bullish driver behind Ethereum’s current outlook is whale accumulation. Between May 24 and May 29, whale wallets holding between 10,000 and 100,000 ETH added 190,000 ETH, worth approximately $513 million at current prices.
But that’s not all.
Data from Santiment also shows that wallets holding between 100,000 and 1 million ETH increased their balances from 17.7 million ETH to 18.97 million ETH in just four days. That’s an addition of 1.27 million ETH, suggesting strong institutional belief in Ethereum’s long-term growth.
These large holders are often known for buying during dips and holding during recoveries — and their current behavior hints at growing confidence in a major ETH rally.
Capital Rotation From Solana to Ethereum Adds to Bullish Case
Another factor contributing to Ethereum’s momentum is the capital rotation out of Solana (SOL) and into ETH. Ethereum now leads in terms of netflow and stablecoin supply, showing that traders are shifting liquidity toward ETH amid expectations of a stronger rebound.
Solana may have had its moment in early 2025, but ETH appears to be regaining its dominance — both in terms of sentiment and technical strength.
This shift in investor preference, combined with whale accumulation and favorable chart setups, is building a bullish case for Ethereum in the short to mid-term.
What to Watch Next for Ethereum Price
For Ethereum to confirm a move to $3,000, the price must:
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Hold above $2,600 support in the coming days
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Break above the $2,800–$2,950 resistance range
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Maintain RSI levels above 65 with volume confirmation
If these conditions are met, ETH is well-positioned to retest and potentially surpass the psychological $3,000 mark. A breakout above this level could accelerate gains toward $3,400, based on previous historical patterns.
Conversely, failure to hold support at $2,440 could result in a temporary pullback toward $2,300, although this would likely invite more accumulation from long-term holders.
Final Thoughts
Despite a sharp 4.9% drop, Ethereum’s current technical structure — including a bullish EMA crossover, strong RSI, and heavy whale accumulation — suggests that the pullback may be a launchpad for another rally.
If market momentum continues and resistance levels are broken, Ethereum could soon reclaim $3,000 and even push higher in June 2025.
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