Ethereum Roars Past $2,300—$265M in Liquidations as Bulls Take Control
ETH’s relentless rally triggers a bloodbath for shorts—traders caught on the wrong side of the bet just learned a $265 million lesson.
Price prediction algorithms scramble as Ethereum defies gravity, hitting $2,331 amid spot ETF speculation. Wall Street analysts still can’t decide if it’s ’digital gold’ or a glorified spreadsheet.
The real winner? Gas fee collectors, quietly stacking fees while degens YOLO into perpetual swaps.
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.
Buy Above: $2,232
Take Profit: $2,550
Stop Loss: $2,101
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.
