Ethereum (ETH) appears to be staging a comeback after briefly slipping to $2,400 on May 17. With renewed buying interest and technical patterns flashing bullish signals, market watchers are increasingly confident that ETH may be gearing up for a climb back to $3,000 — or even beyond — before the month ends.
The cryptocurrency gained over 2.5% on May 18, trading around $2,536 at the time of writing. This upward move didn’t just lift investor morale; it also triggered a flurry of liquidations among short sellers. According to data from CoinGlass, over $22 million in short positions were liquidated as Ether surged, with $7.5 million of those being wiped out in just a single hour.
This surprise move caught many bearish traders off guard. ETH jumped from $2,440 to an intraday high of $2,551, signaling a powerful shift in momentum. The broader crypto market also experienced volatility, with more than $158 million in leveraged positions liquidated within 24 hours — $95 million of which were long bets, reflecting just how turbulent trading conditions have been lately.
Interestingly, market depth data points to significant seller interest all the way up to $3,000, with more than $384 million in ask orders stacked above the current price. While that could serve as a potential ceiling in the short term, the broader sentiment among analysts is leaning bullish.
Analysts See Strength Underneath
Several analysts believe Ethereum’s recent dip was nothing more than a healthy pullback — a moment to catch its breath before a bigger push. The pseudonymous trader Titan of Crypto pointed to the weekly Stochastic RSI, which sits near 79, arguing that ETH “still has more gas in the tank.”
Meanwhile, Chimp of the North, another well-followed trader, suggested that ETH could revisit the $2,400 support zone once more before making a stronger move toward the $3,000–$3,300 range. His technical chart analysis indicated that this support level has been a solid foundation for previous rallies.
Not everyone is convinced the path to higher prices will be smooth, though. Analyst Crypto Patel warned that ETH might test as low as $1,800 before mounting a real breakout. However, Patel noted that this lower level could offer a “high-probability re-entry zone” for bullish traders, especially if demand holds firm. He added that such a scenario could set the stage for a more dramatic rally toward $4,000–$5,000 in the coming months.
Bull Flag and Technical Signals in Focus
From a charting perspective, Ethereum’s price is still tracking above a key bull flag pattern on the four-hour timeframe. A bull flag is a technical setup that often precedes a continuation of an uptrend after a brief period of consolidation. ETH confirmed this flag on May 13 by breaking out above the upper trendline near $2,550.
The current challenge lies at retesting that breakout zone. ETH is hovering just above $2,470 — the upper boundary of the flag. If the price can secure a daily close above this level, the uptrend may resume with a potential target around $3,720 — a gain of roughly 50% from current levels.
However, traders should be cautious. The relative strength index (RSI), a popular momentum indicator, has dropped from 60 to 42 over the last 24 hours, hinting at possible exhaustion. If ETH loses its grip on $2,470, it could revisit $2,400 and potentially fall to $2,300, the lower end of the bull flag.
Macro Catalysts Still in Play
Beyond charts and technicals, Ethereum’s long-term prospects remain tied to broader trends — including the growing impact of artificial intelligence, expectations for spot ETH ETFs, and ongoing upgrades like the Pectra update. These developments could provide the necessary fuel to launch ETH toward new all-time highs in the months ahead.
While the road back to $3,000 may face bumps along the way, Ethereum’s latest rebound shows that the bulls aren’t ready to step aside just yet. As May unfolds, traders will be watching closely to see whether ETH has what it takes to sustain this rally — or if another shakeout is in store first.
