Ethereum is heading into May with a notable upswing that cannot be overlooked. As of now, its trading price stands at $1,830.23, reflecting a 15.3% increase over the past two weeks.
Despite being capped under the $1,900 resistance level, there are strong bullish indicators lurking beneath the surface. While Ethereum’s ascent to the $2,000 mark appears relatively calm, significant movements and internal upgrades are subtly influencing the market, suggesting that a rally could follow as momentum builds.
Several bullish catalysts are contributing to this quiet but significant surge in Ethereum’s performance. Recent analyses indicate that Ethereum’s market price is trading at a discount compared to on-chain transaction volumes.
This divergence points to a potential misalignment between its Market Value and Realized Value, hinting that Ethereum may be fundamentally undervalued. Additionally, the count of active whale addresses (holding 1,000–10,000 ETH) saw a rise to 117, coinciding with a recent price dip to the $1,400 range, indicative of strategic accumulation by larger entities during market downturns.
The influx of institutional investment further supports this notion, with the Ethereum ETF market experiencing $6.5 million in net inflows, primarily from Fidelity’s FETH fund, signaling a bullish outlook from significant investors. Moreover, the structural shifts in the market are enhancing Ethereum’s potential.
The U.S. Securities and Exchange Commission (SEC) has approved VanEck’s Ethereum ETF, which not only provides exposure to Ethereum’s price movements but also offers annual staking rewards of up to 5%. This comes at a time when the Total Value Locked (TVL) in DeFi has surged from $114 billion to $121 billion in just a month, indicating rising interest from both institutional and retail investors.
As more individuals view Ethereum as a store of value or staking opportunity, these developments reinforce the likelihood of Ethereum reaching its $2,000 target in May.