Ethereum’s Impulsive Waves Zone: A Prelude to an $18,000 Rally?
Ethereum (ETH) is showing signs of a potential major breakout despite the current market downturn. After dipping below $2,700, analysts are pointing to bullish momentum and a critical technical zone that could precede a significant rally. Trader Tardigrade, a well-known crypto analyst, has identified the ’Impulsive Waves zone’ as a key indicator for what might become one of Ethereum’s most substantial price surges. As of May 31, 2025, ETH is trading at $2,521.81 USDT, but the anticipation of an $18,000 rally is growing among investors. This article delves into the technical and market factors driving this optimistic outlook for Ethereum.
Ethereum Poised For Major Liftoff: ETH Entrance Into Key Zone Could Trigger $18,000 Rally
Ethereum’s recent price action suggests a potential breakout despite current market weakness. After briefly falling below $2,700, analysts highlight ETH’s bullish momentum and its approach to a critical technical zone known for preceding major rallies.
Trader Tardigrade, a prominent crypto analyst, identifies the ’Impulsive Waves zone’ as the catalyst for what could become one of Ethereum’s most significant upward moves. Historical patterns indicate this zone often precedes massive breakouts, with ETH potentially targeting new all-time highs.
The cryptocurrency’s robust recovery cycle—marked by sharp declines followed by swift rebounds—positions it favorably within this bullish technical structure. Market observers now watch for confirmation of the anticipated upward trajectory.
Ethereum Posts First Monthly Gain in 2025 Amid Whale Accumulation and ETF Inflows
Ethereum (ETH) is set to close May with a 46% monthly gain—its first positive month in 2025—fueled by aggressive whale accumulation and robust demand for US spot ethereum ETFs. Large holders added 1.12 million ETH to their balances, the most significant monthly increase since July 2022, while ETF inflows reached $493 million.
The altcoin’s rally coincides with improved macroeconomic sentiment following US trade agreements with key partners. ETH currently tests critical technical support NEAR $2,578, with the 14-day EMA reinforcing an ascending triangle pattern. Market participants now watch whether institutional and whale demand can sustain momentum through June.
Ethereum ETF Investors Face Steep Losses Amid Market Volatility
BlackRock and Fidelity’s Ethereum ETF investors are grappling with unrealized losses exceeding 21% as ETH struggles to reclaim the $3,000 threshold. The average cost basis for these funds sits at $3,300 and $3,500 respectively, while Ethereum trades at $2,621—a stark reminder of the cryptocurrency’s recent downturn.
Despite nine consecutive days of inflows totaling $435.6 million since May 16, institutional demand contrasts sharply with ETF holders’ underwater positions. Ethereum’s 44% rebound from April’s yearly low of $1,472 offers a glimmer of hope, though geopolitical tensions and macroeconomic pressures continue to weigh on sentiment.
Market observers note the paradoxical strength of institutional inflows against a backdrop of widespread portfolio losses. The court-blocked TRUMP tariffs provided temporary relief, but Ethereum’s failure to sustain momentum above key psychological levels keeps investors cautious.
Ethereum Whales Trigger Market Jitters with Massive ETH Sell-Off
Ether’s price slid nearly 4% as two dormant whales unloaded 1,547 ETH tokens worth over $4 million through OKX and Kraken. The sell-off forms part of a broader exodus, with large holders dumping 684,100 ETH in 24 hours—pushing netflow into negative territory at -83,500 ETH.
The cryptocurrency has been range-bound between $2,400 and $2,700 for three weeks, testing investor patience. One whale retains a $132 million position after depositing 959 ETH, while another has systematically sold 14,398 ETH since March. Market observers note such coordinated exits often precede volatility.
Ethereum Nears Critical Breakout Amid Declining Volume
Ethereum hovers near a pivotal technical juncture as its price consolidates within an ascending channel. The second-largest cryptocurrency by market cap trades around $2,690, caught between decisive support at $2,500 and resistance near $2,850. Market participants grow increasingly cautious as trading volume dwindles—a classic sign of weakening momentum.
The narrowing price range coincides with converging moving averages, signaling potential volatility ahead. A breakdown below channel support could trigger a retreat to $2,400, while sustained buying pressure above $2,850 may reignite bullish momentum. Ethereum’s recovery from earlier losses adds complexity to the technical picture, leaving traders divided on near-term direction.
Ethereum Price Analysis: Momentum Fades as ETH Faces Key Resistance
Ethereum struggles to break through the $2,800 resistance level, with weakening momentum raising concerns about a potential drop to $2,000. The cryptocurrency has been consolidating below this critical threshold after a strong rally earlier in May, reflecting dwindling buyer conviction at current highs.
Technical indicators reveal a mixed outlook. The daily chart shows ETH holding above the 100-day moving average and a key breakout zone near $2,200, maintaining an overall bullish structure. However, the RSI dipping below 70 signals fading upward pressure. A decisive breakout above $2,800 could propel ETH toward $3,400-$3,600, while failure may trigger a retest of $2,200 support.
On the 4-hour timeframe, an ascending triangle pattern has formed between $2,800 resistance and $2,500 support. This consolidation follows two earlier accumulation phases below $1,850. The neutral RSI reading near 47 suggests market indecision. A breach below $2,500 WOULD confirm bearish momentum, potentially accelerating declines.
