Ethereum Primed for Explosive Rally? ETH Surged 80% Last Time This Signal Flashed
Ethereum bulls are licking their chops as a familiar technical pattern emerges—one that preceded an 80% price surge last time it appeared. Is history about to repeat itself?
The setup: ETH’s chart is painting a near-identical picture to its pre-pump formation from earlier this year. Traders are now debating whether we’re seeing a genuine breakout or just another fakeout in crypto’s endless cycle of hype and disappointment.
Key indicators: The same confluence of on-chain metrics and derivatives activity that fueled the previous rally is back with a vengeance. Open interest is climbing, whales are accumulating, and—shockingly—some institutional money might actually be flowing into something besides Bitcoin for once.
The cynical take: Of course, this could just be another ’buy the rumor, sell the news’ setup before the SEC finds a creative new way to delay ETH ETFs. Because nothing says ’financial innovation’ like regulatory limbo.
Bottom line: Whether this rally has legs or not, one thing’s certain—ETH isn’t going down without a fight. Buckle up.
What Do Ether Whales Know?
In a May 31 post on the social media platform X, pseudonymous crypto analyst Darkfost provided an on-chain outlook on the Ethereum price momentum and investor sentiment. According to the market analyst, an on-chain signal that preceded a significant price rally for ETH in the past has gone off.
The relevant indicator here is Ethereum’s Average Order Size on Binance, which is calculated by dividing the total trading volume by the number of trades on the world’s largest cryptocurrency exchange (by trading volume). This metric offers insights into the classes of traders — whether it is large institutional investors or retail traders — that are most dominant on a specific exchange.
Based on this on-chain metric, the ethereum large investors are once again back in the market, as shown by the whale orders on Binance since May 19. Darkfost said the chart below provides “an instant snapshot of Ethereum’s sentiment and momentum on Binance, while combining key market data on spot and futures activity, cumulative volumes, with moving averages comparison.”
The on-chain analyst added:
In short, it’s an all-in-one signal, and today, it’s flashing something rare and powerful because the last time this indicator lit up like this was in December 2023, right before ETH rocketed from $ 2,200 to $ 4,000.
Darkfost also mentioned that whales aren’t always trying to find a low entry point, but rather position themselves early when a broader trend begins to show signs of strength. With the average orders on Binance predominantly placed by whales, it implies that the Ethereum price could be gearing up for another 80% move over the next few weeks.
Hence, Darkfost believes the month of May might have been a huge entry window, which most of the large investors seemingly took advantage of.
Ethereum Price At A Glance
As of this writing, the price of Ethereum stands at around $2,537, reflecting a 0.5% increase in the past 24 hours.
