Entering May, ETH is facing an undeniable tailwind. At the time of writing, ETH's trading price is $1,832, rising 15.3% in just 2 weeks.
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Clearly, the price is trapped below the $1,900 supply barrier, but do not be misled, as bullish signals are very strong.
ETH's path to $2,000 currently looks calm, with massive capital inflows and internal upgrades quietly taking effect. However, once these changes occur, FOMO is expected to play a role and drive ETH into a full bull market.
Catalysts Driving ETH's Quiet Rise
Relative to on-chain transaction volume, ETH's market price continues to decline. This refers to the mismatch between market value and fair value (MVRV). In short, ETH may be fundamentally undervalued, and smart money has already positioned itself before a broader market revaluation. Supporting this argument is that the number of 30-day active whale addresses (holding 1,000 - 10,000 ETH) has also increased to 117.
This rebound is also closely related to ETH falling to $1,400, indicating that large entities made strategic accumulations during market pressure periods.
However, this is not all, as institutional capital flows are becoming increasingly apparent. For example, the Ethereum ETF market saw a net inflow of $6.5 million, with Fidelity's FETH fund occupying the entire share.
These institutional fund inflows are like a green light for ETH to reach $2,000, indicating that large funds are betting on a bullish scenario.
Structural Changes Driving ETH's Next Chapter
The U.S. Securities and Exchange Commission (SEC) has approved VanEck's Ethereum ETF, which offers investors a double benefit of exposure to ETH price movements and up to 5% annual staking rewards.
The recent popularity of Ethereum ETFs is not surprising. These funds have indeed played a role, especially during the "Trump wave" after the big election, with millions of dollars flowing in daily.
Moreover, the Pectra upgrade is about to be launched, which signals further price increases. Ethereum's technical upgrades combined with staking rewards make it a win-win solution for investors.
You can directly see this in Ethereum's DeFi total locked value (TVL), which has soared from $114 billion to $121 billion in just 1 month.
Clearly, both large investors and retail investors are taking advantage of these opportunities. They view Ethereum as a store of value or a staking medium.
All these dynamics are strengthening ETH's goal of reaching $2,000 in May.
