Ethereum Price Analysis: 38% May Surge After Q1 Crash

Q1 2025: Steep Decline and Market Disappointment

Ethereum ended Q1 2025 with a steep 45% drop.

Investors were let down by the White House’s crypto summit in early March, which dragged prices down.

April Recovery and May’s 38% Surge

In April, Ethereum sank close to $3,185 – the lower bound of the regression channel – although the bulls staged a late-month rebound, capping the monthly decline to 1.5%.

The bulls regained the upper hand in May, pushing Ethereum’s price up 38% to date.

Key Factors Driving Ethereum’s Revival

Experts point out that this cryptocurrency is going strong, fueled by growing stablecoin payment flows as well as tokenization of securities.

Ethereum plays a key role here, boosted by advancements in Layer 2 protocols on its public blockchain.

Another factor propping up Ethereum is reportedly the unwinding of short positions.

Technical Analysis: Bullish Flag Pattern Emerges

Our latest technical analysis of ETHUSD showed support at $1,530, which was hit in early April.

Furthermore, the bears tested that level but failed to break through.

A local bullish trend kicked off in late April and ran through mid-May.

Ethereum climbed to the 50% retracement level ($2,745-2,750) before pulling back in line with the prevailing trend.

Technically, the short-term timeframe reveals a mildly positive outlook for ETHUSD.

A classic bullish flag pattern is shaping up on the token’s price curve, signaling that the trend will likely gain traction.

A breakout above $2,745 would confirm a trend reversal, potentially shifting the regression channel’s slope and driving ETHUSD back to the $3,070-3,100 range.

Under a moderately bearish scenario, the next target could be $2,440, where the 200-day MA lies, followed by a potential pullback toward the $2,100-2,150 range.

Notably, both the weekly and monthly charts point to a sustained bullish trend, suggesting that further price gains are more likely moving forward.