Ethereum (ETH), the second biggest cryptocurrency, hasn’t done well for the past five months. But now that we’re in May, many people think things could finally turn around.
Here are four simple reasons why experts believe Ethereum could bounce back this month:
1. May Is Usually a Lucky Month for Ethereum
In past years, Ethereum has done really well in May. Data shows it’s the best month of the year for ETH.
On average, Ethereum has gone up about 27% in May — more than in any other month.
Crypto expert Cyclop thinks it could happen again:
“May is usually great for ETH. I believe it can reach $2,500 before the month ends.”
For example, back in May 2020, Ethereum went up more than 20%, and that kicked off a big upward trend for the rest of the year.
2. ETH Looks Cheap Right Now
Experts also look at data from the blockchain to check if Ethereum is too expensive or a good deal.
Right now, ETH seems undervalued, meaning it’s cheaper than it should be based on how people are using it.
This has only happened a few times in the past 10 years — like during the COVID crash in March 2020. After that, Ethereum went from under $120 to over $2,000 within a year.
That’s why people are saying now might be a good time to buy ETH before prices go up again.
3. Big Investors Are Buying More ETH
Even though ETH prices dropped recently, big investors (called whales) didn’t sell. In fact, they bought more.
Between March 10 and May 3, the amount of ETH in whale wallets jumped by over 22% — from 15.5 million to 19 million ETH.
When whales buy more, it usually means they believe ETH will go up soon.
Crypto expert Carmelo Alemán said:
“These investors still believe in Ethereum. Their actions show they expect the price to rise soon.”
4. Ethereum Is Getting a Major Upgrade This Month
On May 7, Ethereum will release a big update called Pectra.
This update is meant to make Ethereum easier to use, especially for apps and wallets. If more people start using Ethereum because of this, the demand could go up — and so could the price.
That same day, the U.S. central bank (the Fed) will also give an update on interest rates. If the Fed shares good news, it could help ETH and other cryptocurrencies move higher.
But if the Fed sounds negative, prices might go the other way.
We’ve seen this before: in 2022, when the Fed raised rates, crypto prices fell fast — but they recovered later.
In Simple Words…
Ethereum has had a rough time lately, but May could be different. It’s usually a strong month, prices seem low, big investors are buying, and a big upgrade is coming.
If everything goes well, Ethereum might be ready for a comeback. But as always in crypto — expect some ups and downs.
