Ethereum back to $3K in May? Latest rebound says ETH price 'still has more gas'

Ether’s price surge on May 18th, reaching $2,550, triggered significant short liquidations totaling $22 million. This upward movement, exceeding 2.5% in 24 hours to reach $2,536, fueled optimism among traders anticipating a potential price increase to $3,000 in May, driven by positive technical indicators. Data from Cointelegraph Markets Pro and Bitsamp revealed an intraday high of $2,551, a 4.5% increase from the previous day’s low. Simultaneously, the broader crypto market saw over $158 million in leveraged liquidations, with $95 million from long positions and $22.25 million from short Ether positions, including $7.5 million liquidated within an hour. CoinGlass data indicates substantial seller interest above the current price, with ask orders totaling over $384 million up to $3,000, potentially limiting further recovery.

Market analysts view the recent price drop as a technical correction, testing support levels before resuming an upward trend. Titan of Crypto cites the weekly Stochastic RSI value at 79, suggesting further upward potential. Conversely, Chimp of the North anticipates a retracement to $2,400 before another rally towards $3,000-$3,300, while Crypto Patel predicts a deeper drop to $1,800 before a potential rise to $4,000-$5,000. This potential surge is linked to AI adoption, spot ETF inflows, and the Pectra upgrade, potentially pushing ETH to new all-time highs around $5,000.

Technically, Ether’s price remains above a bull flag pattern on the four-hour chart, confirmed on May 13th. A daily close above $2,470 (current immediate support) could propel the price to the bull flag’s target of $3,720. However, a drop in the RSI from 60 to 42 indicates potential for further correction if profit-taking intensifies. A daily close below $2,470 might lead to a price drop to $2,400 and potentially $2,300. It’s crucial to remember that this information does not constitute investment advice, and all investment decisions carry inherent risk. Thorough research is essential before making any trading decisions.