Ethereum (ETH) Price Prediction & Analysis: Pattern Signals Rally to $3,000?

TLDR

Ethereum has formed a bullish Morning Star candlestick pattern on monthly charts, suggesting a potential price reversal Spot Ethereum ETFs recorded $564 million in net inflows during May 2025, up from $66 million in April ETH must hold above $2,550 support level to maintain bullish momentum toward $2,650 Nearly 300,000 ETH left Binance between mid-April and mid-May, creating potential supply shortage Analysts predict ETH could rally to $3,000-$3,800 based on technical patterns and institutional interest

---

Ethereum has shown signs of a potential price reversal after forming a bullish Morning Star candlestick pattern on its monthly chart. This technical formation typically signals the end of a downtrend and the start of upward momentum.

The Morning Star pattern consists of three candles: a large bearish candle, a small indecision candle, and a strong bullish candle that closes well into the first candle’s body. Crypto trader Merlijn The Trader first highlighted this development on social media.

Morning Star flashed on the monthly for Ethereum.

This is a macro reversal signal.

If history is any guide…

The bottom is in and the most hated rally is only getting started. pic.twitter.com/yhAeIHfODa

— Merlijn The Trader (@MerlijnTrader) June 2, 2025

Despite recent gains of 37.7% over the past month, Ethereum remains over 33% below its June 2024 highs. The cryptocurrency is currently trading at around $2,538-$2,613, showing mixed performance in recent sessions.

Institutional interest in Ethereum has grown substantially. Global crypto exchange-traded products saw $286 million in net inflows during the week ending May 30, with Ethereum-based products contributing to this trend.

Spot Ethereum ETF data shows even stronger institutional appetite. May 2025 recorded total net inflows of $564 million, a sharp increase from April’s $66 million. This represents the strongest inflow period since these products launched.

Monday alone saw $78.2 million in net inflows to Ethereum ETFs, while Bitcoin ETFs experienced outflows of $267.5 million. This suggests a rotation of institutional capital from Bitcoin to Ethereum.

Ethereum (ETH) Price

Technical Analysis Points to Breakout

Veteran analyst Ali Martinez emphasized the importance of the $2,550 support level. If Ethereum holds above this threshold, he predicts a possible move toward $2,650.

Fellow analyst Titan of Crypto suggests Ethereum could reach $3,800, citing a breakout from a bullish flag pattern on daily charts. The cryptocurrency is currently trading above its 200-day exponential moving average, which often indicates continued upward movement.

Analyst Rekt Capital noted that ETH is attempting to reclaim $2,500 as support, similar to its parabolic run above $4,000 in mid-2021. The next target region appears to be $3,000.

Supply Dynamics Support Price Action

Exchange data reveals that nearly 300,000 ETH left Binance between mid-April and mid-May. This outflow could contribute to supply constraints that support higher prices.

Staking activity continues to grow, with entities like Abraxas Capital recently staking $7.5 million worth of ETH. The proof-of-stake mechanism allows holders to earn rewards for securing the network.

A Messari report shows Ethereum has secured $219 billion in total capital as of May 28. This represents more than any other blockchain, including Tron and Solana.

Analyst Michael van de Poppe identified a hidden bullish divergence on ETH charts, signaling readiness for an upward breakout. Other analysts have noted buying signals on the ETH/BTC trading pair.

Good signs, a hidden bullish divergence on $ETH signalling that we're ready for a breakout upwards.

It's still taking a lot of time, but happy to be seeing the consolidation, while still being up a lot from the low in April. pic.twitter.com/oS4N6tExx2

— Michaël van de Poppe (@CryptoMichNL) June 2, 2025

Trading volume increased by 61% in the last 24 hours, indicating rising trader interest. The combination of technical patterns, institutional inflows, and supply dynamics suggests Ethereum may be positioned for further gains.

The post Ethereum (ETH) Price Prediction & Analysis: Pattern Signals Rally to $3,000? appeared first on CoinCentral.