Ethereum Breaks $2,500 Barrier: Technical Signals Point to Potential $10,000 Target
Rising by around 40% over last week, Ethereum (ETH) broke the $2,600 resistance on May 11, 2025. Following the successful Petra upgrade on 7
Quick overview
- Ethereum's price surged by around 40% after breaking the $2,600 resistance following the successful Petra upgrade.
- The Petra upgrade has led to significant deflationary pressure, removing approximately 38,000 ETH from circulation and attracting institutional interest.
- Whale activity has increased, with large holders purchasing over 138,000 ETH, contributing to Ethereum's price rise and pushing long-term holders into profit.
- Despite a positive outlook, caution is advised due to bearish signals in futures trading and potential selling pressure from recent USDT withdrawals.
Rising by around 40% over last week, Ethereum ETH/USD broke beyond the $2,600 resistance on May 11, 2025. Following the successful Petra upgrade on May 7, ETH at last shows indications of regaining pace, after months of underperformance.
ETH’s Deflationary Pressure Builds After Petra Upgrade
With improved burning systems that have taken around 38,000 ETH out of circulation in only a few days, the new Petra improvement has become a major driver for Ethereum’s price explosion. Strong increasing momentum has resulted from this deflationary pressure together with growing institutional interest.
Veteran trader Peter Brandt has found a strong market structure that suggests prices might hit the $3,800-$4,800 level should Ethereum break through its present “congestion” pattern. Brandt’s view of 2025 shows a notable change in this study.
Ether’s Institutional Adoption Accelerates
BlackRock’s stated acquisition of 7,976 ETH (worth roughly $18.9 million) and drive for staking exchange-traded funds point to increasing institutional trust. Such ETF products might bring demand from conventional finance that generates sustained yield.
Reflecting this optimism, Ethereum’s open interest surged 42% from $21.3 billion to $30.4 billion between May 8 and May 11, approaching its all-time high of $32 billion.
ETH Whales Accumulate While Technicals Strengthen
On-chain data reveals significant whale activity; big holders bought 138,511 ETH (about $337 million) in just 48 hours. Together with $434 million in short liquidations, this build-up has driven Ethereum’s ascent.
Ethereum surpassing its stated price of $1,900 – the average purchase price across all coins in circulation, is a significant technical accomplishment. Long-term holders enter profit territory with this milestone, usually inspiring more investment rather than sales.
Ethereum Price Prediction: Potential Path to $10,000
Since 2015, Ethereum’s long-term price behavior has followed a parabolic curve that defines its main market cycles. Major rallies have historically been set off by the latest rebound from the bottom bound of the curve close to $2,100.
Analyst MilkyBull Crypto notes that a rebound to $10,000 “can’t be ruled out technically,” especially given the current configuration reflects historical consolidation trends that preceded breakouts to new all-time highs. While bouncing off its 200-2W exponential moving average support, Ethereum is also reclaiming the lower trendline of a multi-year symmetrical triangle.
Short-Term Caution Signs
Though the view is positive, multiple factors point to almost immediate caution. Futures traders’ short-term bearishness is shown by the taker buy-sell ratio falling below 1. Furthermore, major USDT withdrawals from Binance matching rising ETH inflows (more than 98,000 ETH in two days) might generate selling pressure should new capital not find a market.
Currently rated as “extreme greed,” the Fear & Greed Index is typically a forerunner of minor price corrections.
Ethereum Set to Outperform Solana, XRP?
Given both Solana and XRP display negative trends against ETH on their respective charts, Ethereum seems positioned to beat competitors. The Altcoin Season Index has also broken out from a slump, implying alternative cryptocurrencies might soon surpass Bitcoin.
The next several weeks will decide whether Ethereum settles under $2,500 or keeps on toward the next big targets for investors. Although instantaneous barrier is $3,000, technical patterns indicate far higher pricing potential if current momentum maintains through the short-term swings of the market.
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