Key Notes: Ethereum (ETH) Price Rally Cools Off as Market Pulls Back, But Long-Term Holders Remain Undeterred

After surging from the $1,800 level to a high near $2,700 within a week, Ethereum's impressive rally is finally cooling off.

After surging from the $1,800 level to a high near $2,700 within a week, Ethereum’s impressive rally is finally cooling off. At the time of writing, ETH is trading around $2,567, down nearly 4% in the past 24 hours.

According to CoinMarketCap, this pullback has wiped off around $13 billion from Ethereum’s market capitalization.

While short-term traders are beginning to grow cautious, Long-term holders remain unserptime時間でnal.

On-chain data shared by analyst Ali Martinez reveals that over 1 million ETH, which is worth about $2.5 billion, have been withdrawn from exchanges over the past month.

Nearly 1 million #Ethereum $ETH have been withdrawn from exchanges in the past month! pic.twitter.com/dOypSQXgsA— Ali (@ali_charts) May 15, 2025This movement suggests a strong inclination toward self-custody and long-term holding, hinting at an incoming supply shock. Historically, such trends have led to major upward price moves.

This shift in sentiment coincides with Ethereum’s Pectra upgrade, which went live on May 7. The upgrade sparked a 50% ETH price rally and reignited institutional interest.

Still, Ethereum faces several challenges, including lagging adoption relative to Bitcoin, decreasing developer engagement, and emerging blockchains like Solana and Cardano posing competitive threats.

ETH Price Outlook

On the daily ETH price chart, the RSI has slipped from the overbought territory above 70 and currently stands around 69—still bullish, but suggesting that further upside may be limited in the near term unless renewed buying pressure emerges.

ETH price chart with RSI and Bollinger Bands | Source: TradingView

Meanwhile, Ethereum recently touched the upper Bollinger Band near $2,700 and is now pulling back toward the midline (20-day SMA) around $2,090. This hints at short-term consolidation. A break below the $2,450 support could trigger further declines toward the $2,250 level.

Conversely, a decisive close above the $2,650 resistance would be needed to reignite bullish momentum.

Interestingly, the ETH 4-hour chart appears to be forming a bull flag pattern, with the flagpole extending from early May’s $1,700 bottom to the $2,700 peak. The upper boundary of the consolidation zone lies between $2,600 and $2,650.

Potential bull flag pattern on ETH 4-hour chart | Source: Trading View

A breakout above this band would complete the bullish flag, setting the stage for a potential rally to the 3.618 Fib level from the last swing low, which falls around $3,600.

Key Notes