Finally Entering the Profit Zone! A Past 2,200% Surge Signal Appeared on the Ethereum Chart

▲ Ethereum (ETH) ©

Ethereum (ETH) is preparing for a massive explosion, trapped in a narrow range between the $2,300 support and $2,400 resistance, with rosy forecasts suggesting it will reopen the $3,000 era upon a technical breakout.

According to TradingNews, an investment media outlet, on May 11 (local time), Ethereum (ETH) is trading at $2,330.99 as of Monday morning, showing extreme volatility. While it has shown a moderate recovery from its annual low of $1,750 recorded in February, investors have adopted a wait-and-see approach to confirm inflation indicators, including the US Consumer Price Index (CPI) and Producer Price Index (PPI), to be announced this week. Currently, ETH is forming a typical 'Bull Flag' pattern and stands at a critical juncture where a break above the $2,400 resistance or a collapse of the $2,200 support will determine whether it experiences a surge or drop of over 30%.

On-chain metrics have revealed very encouraging signals. Ethereum's 'Realized Price,' which represents the average acquisition cost of all circulating supply, recorded $2,320. With the current market price surpassing this, the majority of holders have entered a profitable zone. Historical cases show that immediately after Ethereum recovered its realized price, it continued explosive rallies ranging from a minimum of 58% to as much as 2,200%. As such, the market anticipates a strong upward momentum this time as well, largely because investors who have entered profit are stopping panic selling and switching to long-term holding (HODL), leading to a sharp decrease in selling pressure.

Institutional capital inflow is also forming strong downside support. Ethereum spot ETFs have recorded cumulative inflows of $12.5 billion and total assets under management (AUM) of $13.73 billion, demonstrating high interest from institutional investors. Companies like BitMine, in particular, are aggressively accumulating over 5.18 million ETH to date, aiming to secure 5% of the total circulating supply. Although some ETFs recently experienced temporary outflows exceeding $100 million, experts generally agree that this is merely a risk management position adjustment ahead of inflation announcements, and long-term demand remains robust.

However, the significant supply overhang remaining in the market is a short-term hurdle. It was recently confirmed that a whale investor named 'Garrett Jin' deposited 577,896 ETH, worth approximately $1.35 billion, into the Binance exchange. This has caused the Ethereum balance on centralized exchanges to surge to 14.95 million ETH, raising concerns about oversupply. BlackRock and Fidelity also recently moved over 35,000 ETH to Coinbase Prime, among other inflows to exchanges, acting as a technical resistance factor delaying the breakthrough of $2,400.

Regarding future prospects, experts assess that while a boring sideways movement between $2,275 and $2,400 will continue in the short term, the mid-to-long term outlook is very optimistic. According to predictive models, there is a possibility of an increase to $3,760 (+61.76%) within 3 months and $6,457 (+177.72%) within 6 months. If this week's CPI results are favorable, the whale accumulation process concludes, and Ethereum successfully settles above $2,400 at closing, it is expected to enter a full-fledged markup phase and show an unstoppable rally towards $3,020.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*