Ethereum’s latest price action has renewed excitement in the world of crypto, with the second largest digital asset by market capitalization lifting above some key valuation yardsticks and finding a couple of new technical support bases.

After several months of sideways action and kind of tepid price performance, Ether (ETH) is starting to show stronger signs of life and price resilience, in a way that seems very evocative of the early stages of a new bull cycle.

Ethereum’s market structure appears to be solidifying at about $2,370, and with more inflows from institutions through spot ETFs, it seems like the stage is being set for a potential run toward $3,000—provided, of course, that the resistance levels don’t just hold but get cleared in the next few days.

On May 22 (ET), spot Bitcoin ETFs saw a total net inflow of $935 million, marking seven consecutive days of net inflows. Spot Ethereum ETFs recorded a total net inflow of $111 million, with five consecutive days of net inflows.https://t.co/ueXcZjub6m

— Wu Blockchain (@WuBlockchain) May 23, 2025

Realized Price Reclaimed: Average Holders Return to Profit

Ethereum has, at long last, moved back above its Realized Price of $1,900. This price point is critical, as it reflects the average price at which all ETH in circulation was last moved on-chain. And it serves as a proxy for the average cost basis of market participants. It is not just Ethereum, though, that is enjoying these past few days of price appreciation. Bitcoin, too, has surged in and around the $31,000 range. And it has reclaimed that narrative of steadfastness in the marketplace. Overall, Ether’s performance has yet to rival Bitcoin’s, though, over the past week. Still, ETH holders are finally back to being in the black.

ETH is currently trading at $2,400, which is now above the True Market Mean. This line has acted as a dividing line in past market cycles. When Ethereum has historically been above it, the market has been in a full-blown bull phase. Not only has it acted as a marker for when the market has been in a bull phase, but I also think you’ve got to give it some respect because when Ethereum has crossed above it, it’s acted as a precursor to some pretty good upward price action.

Ethereum rally update:$ETH has moved above its Realized Price ($1,900), which means the average holder is back in profit.

Even more important — it’s now trading above the True Market Mean at $2,400. That’s been a key line in past cycles.

The next level to watch? Active… pic.twitter.com/NekeAFeBrW

— Kyledoops (@kyledoops) May 22, 2025

The next major landmark to keep an eye on is the Active Realized Price at $2,900. This measure gives the average purchase price of active market players—those who have shifted their ETH recently. Moving above this level would seriously suggest momentum and offer a strong mental go sign for both retail and institutional investors who have been waiting to see if Ethereum can pull off a sustained breakout.

#Ethereum $ETH has built a solid support floor at $2,370, with no significant resistance walls ahead! pic.twitter.com/E67jeybl6e

— Ali (@ali_charts) May 22, 2025

Technical Setup Strengthens: Ethereum Support at $2,370, Eyes on $2,588

Ethereum has established a firm support base at $2,370, which has held up relatively well in the face of recent retests. It is now solidly beneath us and serving as a launching off point for price to try to push above without getting immediately shoved back down by apparently impatient sellers. And should volume and buying pressure continue to push the price higher, a lack of resistance walls ahead figures to allow for some pretty clean upsides.

The $2,588 level of resistance for Ethereum is next in line and is significant enough that a break through it would likely send the second largest crypto flying toward the $3,000 area. Such a move would mark a full recovery from the lows seen earlier in the year and would signal a return to a more aggressive bullish posture across the Ethereum ecosystem.

Analysts note that there is little resistance between present prices and the $3,000 threshold, creating a favorable risk-reward ratio for traders. They see momentum indicators moving in a bullish direction and note that the ETH is priced above several key moving averages. For now, market structure looks pretty solid for the bulls.

Spot ETF Inflows Signal Growing Institutional Confidence

Ethereum-based investment products have shown very promising inflows recently, which indicates a marked improvement in sentiment. On May 22, spot Ethereum ETFs had a net inflow of $111 million—the fifth consecutive day of positive institutional investment.

A steady stream of cash has recently come into Ethereum-backed funds, with the latest figures showing that these vehicles now manage over half a billion dollars. This might not sound like a lot, but these are still the early days for these funds; the amount could grow quite a bit. And in any case, the funding they have now is certainly taking them in an interesting direction.

As with Bitcoin, there are now Ethereum index funds. They don’t hold all the assets that an ETF would; indeed, they invest mostly in Geth, the Ethereum client program written in Go that runs (or should run) on all ETH nodes. And they also invest in a few other things. Still, it’s a start.

Ethereum seems to be on the verge of a possibly large-scale breakout. Why? Well, sentiment is certainly improving, and some of the key price metrics are showing either improvement or completion of bullish setups. Also, from a technical perspective, there really isn’t much in the way of the price until around the $2,900 range, and even then, there are some doubts that whatever happens at that price level will have any lasting effect.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Filed under: Bitcoin - @ May 24, 2025 6:26 am