Ethereum Nears $2,500—Traders Brace for Possible Pullback

After the impressive surge of 59.7% in the last month, Ethereum (ETH), the second-largest crypto asset by market capitalization, is currently changing hands at roughly $2,500. This upward trend, while heralded by the community of cryptocurrency enthusiasts, has lately prompted some of the greatest names in market analysis to warn their investors of a possible overheating in the ETH market. According to the reports and on-chain data that have recently surfaced, Ethereum Price Analysis suggests Ethereum may very well be in for a minor correction before climbing once again in short order.

Overheating Detected: Trading Volumes Stir Alarm

Ethereum is showing the classic signs of an overheated rally, says another analysis by CryptoQuant contributor, ShayanMarkets. The report presented unique charting based on volume data from trades carried out on various exchanges. The bubble sizes represented the different volume magnitudes, and the colors represented different categories of volume changes: Cooling (green), Neutral (blue), Overheating (orange), and Highly Overheating (red).

Between mid-April and mid-May 2025, Ethereum quickly transitioned from “Cooling” to “Overheating.” Increased trade activity around key resistance levels has largely been driven by profit-taking behavior and strong supply pressure around the psychologically important $ 2,500 dotted line. 

Ethereum Price Analysis by ShayanMarkets warns that such an increase in trading volume usually precedes the cooling of a market. This does not mean the end of the rally, however, implying that we should be looking at either a short pullback before the start of the next wave upwards or at least a short pause in further upward movement.

The MVRV Metric and Critical Support Levels

Adding to the cautious note, crypto analyst Ali Martinez added mention of Ethereum’s Market Value to Realized Value ratio (MVRV), a prime on-chain indicator serving to measure overvaluation and undervaluation of assets.

Martinez pointed out that Ethereum has come close to the upper deviation band of its MVRV pricing model. Such conditions have, in the past, inevitably led to corrections unless there was a steadfast buying volume supporting the asset. Ethereum Price Analysis by Martinez’s technical chart suggests that a correction toward $2,200 is likely if ETH does not manage to break the resistance on the upside decisively.

However, Martinez went on to note that a break above $2,200 and holding that support, which has acted as strong support since March, would continue to generate bullish momentum. As per his bullish case scenario, Ethereum may look for $3,000 and even $4,000 in the coming weeks.

Golden Cross Emerges: Bullish Outlook Remains Alive

Ted Pillows, a technical analyst, pointed out the bullish counter-narrative by saying that a Golden Cross was formed recently on Ethereum’s 12-hour chart. A Golden Cross happens when the short-term moving average (usually the 50-day) crosses above the long-term moving average (usually the 200-day). It is considered a classic bullish sign, hinting at a possible continued extended rally.

On Pillows’ view, Ethereum Price Analysis confirms that this technical signal shows Ethereum is now ready for another major upward leg. Pillows added that since Q3 2020, ETH has been trading inside a symmetrical triangle, with the $4,000 mark being just below the upper boundary of that triangle. Breaking out of this multi-year triangle can lead to a prolonged bullish rally.

Bearish Warnings: Watch for Retracement

While some analysts conduct wishful thinking, others urge that a little drawdown seems forthcoming and probable. The onset of lower lows in Ethereum’s daily chart was spotted by crypto analyst Gianni Pichichero, describing an early bearish sign. He warns traders to expect a short-term retracement in Ethereum to about $2,350 in the event that momentum continues to deteriorate.

According to Ethereum Price Analysis by Pichichero, the values of the relative strength index (RSI) drop, and MACD signals today also fade. If these signals show that bullish anchors are vanishing, the market becomes susceptible to downside volatility.

Whale Accumulation and Exchange Withdrawals Provide Support

On these mixed assessments, certain on-chain fundamentals provide a bullish safe harbour. In the last 30 days, on-chain analysis has shown whale wallets which hold large amounts of ETH having accumulated more than 450,000 ETH. This Ethereum Price Analysis of whale accumulation suggests long-term confidence in Ethereum’s price trajectory.

Another bullish signal is that almost a million ETH has moved out of centralized exchanges in the same period since it implies that selling pressure is decreasing. It usually means, whenever there is an enormous transfer of ETH to cold storage or to DeFi protocols, that holders are preparing to ‘HODL’ and not to sell.

DeFi and Network Development Remain Key Drivers

As the Ethereum network further develops, especially via its Layer-2 ecosystem and Ethereum 2.0 staking mechanism, it provides structural support in the long run. Daily active addresses on the Ethereum blockchain continue to remain high. With that said, the total value locked (TVL) in DeFi protocols built on Ethereum surpassed $100 billion once again.  

These events imply that the current Ethereum Price Analysis is not entirely speculative and is sufficiently grounded in actual network usage and expansion of the infrastructure.

What’s Next? Short-Term Pullback or Continuation Rally

Should ETH find support at the $2,200–$2,300 price point during a pullback, most analysts concur that a swift rebound toward $3,000 could materialize. A convincing breakout from the symmetrical triangle currently shaping for several years would open the door for even loftier targets, possibly carrying Ethereum above $4,000 in Q2 2025.

Ethereum Price Analysis indicates that should support at $2,200 falter, in contrast, a deeper retracement toward $2,000 or even $1,850 will take place and shake weak hands clean, thereby resetting the rally.

Investor Takeaway

Around $2,500, Ethereum is now trying to get just below that comparatively very thin inflection point in the price landscape. Because of the overheated activity with mixed technical signals and strong support at $2,200, Ethereum Price Analysis shows that short-term price direction of the asset remains uncertain. Investors should watch volume dynamics, key technical levels, and on-chain indicators in order to make tactical decisions.

Long-term fundamentals are still strong; however, this short-term volatility should not be ignored. The price action happening today acts as an absolute opportunity for an investor to reassess risk and strategy; whether Ethereum breakout toward $3,000-$4,000 or pulls back to cool off.