Ethereum (ETH) Price Eyes 30% Gains in May as Whales Accumulate Ahead of EIP 9698 Proposal

Ethereum price eyes 30% gains in May as historical trends signal that it is one of the best months for the largest altcoin.

May has arrived, and for crypto traders, it is time to assess which coins are still viable following the recent market downturn.

While Bitcoin has always been a popular choice among traders, data from Coinglass shows that May is the best month for Ethereum price, with returns averaging around 30%. If history rhymes and Ethereum follows this trend in the coming months, it could surge from the current price of $1,800 to hit $2,300.

This potential upswing might be supported by several bullish factors, including the recent surge in whale activity and a new proposal that could massively increase Ethereum’s gas limit.

ETH price today stands at $1,801 with a modest 0.9% gain in 24 hours. Buyers are attempting to turn the $1,800 resistance into support, and if they are successful, it could spark further gains.

Ethereum Price May See 30% Gains As Whales Actively Vacuum Up Millions Of ETH Tokens

Data from showed that May has been the best month for Ethereum price, delivering an average return of around 30%.

If history repeats itself and Ethereum follows this trend in the coming months, it could surge by 30% from the current price of $1,796 to hit $2,300.

This potential upswing might be supported by several bullish factors, including the recent surge in whale activity and a new proposal that could massively increase Ethereum’s gas limit.

Chart: Tradingview

As seen in the chart above, these large traders have been busy purchasing millions of Ethereum tokens in the last 24 hours.

During this period, the addresses of traders holding between 1,000 and 10,000 ETH increased their holdings by 10M tokens, which is equivalent to around $18 billion at the current Ethereum price.

Whales are often known for buying the dip and selling at the top. Hence, if they are buying now, it might signal that the Ethereum price is poised for gains in the near term.

New Proposal Could Push Ethereum TPS To 2,000

Besides historical data and whale activity, a new Ethereum proposal might be another key driver for Ethereum price gains.

The EIP 9698 proposal, which is set to be discussed at the upcoming May 18 meeting, aims to increase the Ethereum gas limit by 100x over the next four years.

According to popular analyst fabda.eth, this proposal will have a bullish impact on Ethereum scalability, noting that the network TPS may reach 2,000, while the total transactions will hit 6,000.

If this happens, Ethereum could achieve scalability and rival Solana to attract dApp activity, which will bolster demand and support a bullish Ethereum price prediction.

EIP-9698 (proposal to increase gas limit 100x over 4 years) will be discussed on May 18th. If approved, it will massively increase throughput and unlock another dimension of scaling on Ethereum.

Here's why this is bullish for ETH price and what to expect if the proposal passes. 🧵1/9 pic.twitter.com/e61m880y8v

— fabda.eth 🦇 (pdx coders) (@fabda_eth) May 17, 2024

Ethereum Price Analysis Amid Bullish Breakout

Recently, Ethereum price broke out of a descending parallel channel on the daily chart, a development that is usually observed when a cryptocurrency is exiting a bear market or a broad correction period.

This breakout is also confirmed by the AO bars that have crossed above the zero line, suggesting that the bullish momentum is growing stronger.

The RSI is tipping north, and it has crossed above 50, which is another indication that bulls are in control and a rally is likely.

If ETH can overcome the resistance at $2,025, its next target price is $2,700 and eventually $3,500.

From the technical perspective, the Ethereum price is flashing several bullish signals, including whale accumulation and an ongoing network proposal to bolster network scalability.

As these bullish factors align, traders should watch out for a rally of around 30%, which will match the average returns that ETH often sees in May.