Ethereum Surges 46% in May, Fueled by Whale Accumulation and ETF Inflows

Ethereum (ETH) is experiencing a resurgence, trading around $2,578 on Friday. While down 2.6% for the day, ETH has soared approximately 46% this month, marking its first positive monthly return in 2025. This impressive rally is attributed to significant accumulation by large Ethereum holders (“whales”) and strong inflows into U.S. spot Ethereum ETFs.

Whales and ETFs Drive Ethereum’s Comeback

Data indicates that Ethereum is poised to conclude May with a substantial 46% gain, a welcome change after a challenging start to the year. This bullish momentum follows easing tariff pressures, spurred by the U.S. reaching trade agreements with countries like the UK and, temporarily, China.

The positive macroeconomic signals have emboldened Ethereum whales. Addresses holding between 10,000 and 100,000 ETH increased their holdings from 16.50 million ETH to 17.62 million ETH in May. This represents a massive purchase of 1.12 million ETH, the largest monthly buying pressure from whales since July 2022.

U.S. spot Ethereum ETFs are also reflecting this positive sentiment. They have recorded net inflows of $493.94 million so far in May, pushing their cumulative flows for 2025 into positive territory. Notably, these products saw net inflows of $91.93 million on Thursday, extending their streak to nine consecutive days of positive flows.

Ethereum’s open interest (OI) has also jumped 43% this month, climbing from $12.18 billion to $17.53 billion. Open interest represents the total number of outstanding contracts in the derivatives market.

However, the growth in OI has a nuanced aspect. Investors have been building substantial short positions – exceeding long positions – on Binance. This could indicate whales hedging their bets or purely short plays anticipating a downward trend in ETH.

As the weekend approaches, investors have returned to net buying. Ethereum exchange flows shifted to net outflows of over 114,000 ETH on Friday, ending a three-day streak of inflows. Unlike ETF inflows, net exchange outflows suggest dominant buying pressure in the spot market.

Ethereum Price Analysis: Testing Ascending Triangle Support

Ethereum experienced $117.76 million in futures liquidations in the past 24 hours, according to data. Total long and short liquidations amounted to $98.61 million and $19.15 million, respectively.

ETH dipped below the ascending trendline of an ascending triangle and the 14-day EMA on Friday after facing rejection at the key resistance level of $2,750 the previous day.

If ETH sustains a daily close below the triangle and breaches the $2,500 level, it could extend its decline to test the support range between $2,260 and $2,100. This support range is strengthened by a golden cross of the 50-day simple moving average (SMA) above the 100-day SMA just below it.

On the upside, ETH needs to maintain the ascending triangle support and sustain a firm move above the $2,850 resistance to resume its bullish trend.

The Relative Strength Index (RSI) and the Stochastic Oscillator are above their neutral levels but trending downwards below their respective moving averages, signaling weakening bullish momentum.

• Key Highlights:
• Ethereum whales increased their holdings by 1.12 million ETH in May, boosting monthly returns above 46%.
• U.S. spot Ethereum ETFs have recorded cumulative net inflows of $493 million so far this month.
• ETH is currently testing the ascending triangle support level, reinforced by the 14-day EMA.

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