Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

Ethereum up 20% in 24 hours to $2,331—biggest one day gain of the year. Short liquidations and derivatives activity are fueling the move. According to Coinglass, Ethereum futures volume up 184%, open interest up 20%.

Over $265 million in short positions liquidated, removing downward pressure and accelerating the price up. When price and open interest go up together, it’s usually a sign of new longs being created, not just shorts being covered—could be the start of a new trend.

Despite this big move, Ethereum is still down 26% year to date. But up 54% in the last month alone as investors look for altcoin opportunities in the broader crypto volatility.

Technical Outlook: Ethereum Breaks Key Levels

Ethereum at $2,331 after big move up from $1,950 support level, broke out of the rising channel that had contained it since mid April. 50 period EMA at $1,907 was a strong foundation for this move, aligned with the lower boundary of the channel. This is big bullish momentum, next immediate resistance at $2,386, then $2,550.

But the parabolic move has pushed the MACD into overbought territory, so we should see a pullback. Watch for a retest of the $2,232 support which is the upper boundary of the channel as a healthier base for further up. Break below this and we could see $2,101 support and potentially reverse the trend.

Trade Setup:

• Buy Above: $2,232

• Take Profit: $2,550

• Stop Loss: $2,101

Key Levels:

• Immediate Resistance: $2,386

• Next Resistance: $2,550

• Immediate Support: $2,232

• Next Support: $2,101

ETH/BTC Ratio Signals Undervaluation

A new narrative is emerging that Ethereum is undervalued relative to Bitcoin. As CryptoQuant noted on May 8, the ETH/BTC Market Value to Realized Value (MVRV) ratio is at its lowest since 2019, currently between 0.4 and 0.8. Historically, this has preceded strong ETH outperformance—seen in the 2017, 2019 and 2021 rallies.

MVRV facts:

• ETH/BTC MVRV ratio: 0.4–0.8

• Lowest since: 2019

• Historical outcome: Preceded ETH rallies

Obstacles to Sustained Growth

Despite the bullish signs, Ethereum has some big challenges. Network activity is flat, and the deflationary supply trend has reversed with declining ETH burns. DeFi activity is plateauing and Ethereum based ETFs are seeing big outflows. Grayscale’s ETHE for example has seen billions in redemptions, institutional interest is lukewarm.

Market Concerns:

• Active addresses are flat

• Token supply at all time high

• Grayscale ETHE facing major outflows

The ETH/BTC MVRV ratio suggests a bottom, but Ethereum may need a new catalyst—like staking for ETFs or a DeFi surge—to extend this move into a full recovery.