Ethereum price has surged more than 40% over the past four days, marking its biggest rally since the 2021 bull market. As of May 12, 2025, ETH is trading around $2,500, recovering sharply from last week’s $1,820 zone and sparking renewed optimism among traders and analysts.
The dramatic upswing has been fueled by a mix of technical, on-chain, and macro catalysts. Crypto Rover’s viral tweet comparing the move to the 2021 breakout has only amplified the narrative. And this time, the data may support that claim.
Technical Analysis: Ethereum Price Targets $2,800–$3,200 Range
Ethereum price action over the last week has shattered key resistance levels. After flipping $2,000 into strong support, ETH climbed swiftly through $2,200 and $2,400, before consolidating around $2,550. The bullish engulfing candle that started this run was backed by a spike in volume, suggesting conviction from both retail and institutional buyers.
Source: Tradingview
The daily RSI shows strong momentum without entering overbought territory, and volume has steadily increased — a bullish sign for continuation. Analysts are eyeing $2,800 as the next logical resistance, with some forecasting a full extension toward $3,200 if momentum holds.
Additionally, moving averages are starting to cross into a bullish formation on the 4-hour and daily timeframes, and the MACD is showing a clean divergence above the zero line — often an early signal of multi-week trend reversals.
The chart, now echoing the parabolic structure of early 2021, reinforces the idea that ETH may be leading the charge into a new altcoin cycle.
On-Chain Data Confirms Supply Shock in Progress
Beyond the price chart, Ethereum’s on-chain metrics are painting an even more bullish picture. According to data from CryptoQuant, exchange reserves have fallen to just 19.1 million ETH, their lowest level in over three years.
Source: CryptoQuant
This consistent outflow from centralized exchanges suggests that holders are moving coins into cold wallets or staking contracts — a classic setup for a supply squeeze. Historically, similar reserve drops have preceded aggressive price expansions.
Institutional ETH staking continues to rise post-Merge, and liquid staking protocols like Lido are absorbing new inflows as yield-hungry investors reposition for the next cycle.
Sentiment Turns Positive Across the Market
Sentiment around Ethereum price next move has shifted decisively. The breakout coincides with a drop in Bitcoin dominance, and ETH’s outperformance has ignited talk of a full-blown altcoin season.
Influencers, analysts, and traders across social media have been quick to highlight the scale of the move. The tweet by Crypto Rover, comparing this week’s candle to the launch of the 2021 rally, has already gained over 48,000 views, reinforcing retail excitement.
Meanwhile, Ethereum-related narratives — from rollup adoption to ETH as a yield-bearing asset — continue to support a fundamentally strong outlook.
Macro Environment Supports Risk-On Assets
Ethereum price rally isn’t happening in a vacuum. A recent de-escalation in U.S.–China trade tensions and optimism around interest rate stability have improved the macro environment for risk assets.
With Bitcoin consolidating above $100K and equities also climbing, Ethereum appears to be benefiting from a broader return of risk appetite. Some analysts speculate that ETH could even outperform BTC in the near term if capital rotation into altcoins accelerates.
Final Thoughts: Is Ethereum Leading the Next Bull Run?
After months of sideways action and bear market fatigue, Ethereum has finally come alive — and in spectacular fashion. The 40% rally over just a few days has rekindled bullish sentiment and opened the door for much higher targets in the coming months.
With supply falling, staking rising, and technicals aligning, Ethereum may be positioning itself once again as the flagship altcoin leading a new phase of the cycle.
Whether this becomes the next true bull market or just a powerful rally remains to be seen — but one thing is clear: Ethereum is back in the spotlight.
