Ethereum (ETH) has experienced a significant rally, surging over 40% in the past two weeks and currently trading near $2,550. The price increase is primarily attributed to strong spot market demand rather than leveraged trading, as evidenced by flat funding rates. This suggests the uptrend is underpinned by genuine buyers rather than speculative activity, reducing the risk of sudden reversals due to mass liquidations.
Staked ETH has returned to profitability for the first time since March, with the realized price surpassed on May 9th, which has bolstered validator and network confidence. This is seen as a potential sign of a broader bullish shift for the Ethereum ecosystem, strengthening its economic foundation as the largest on-chain economy with over $213.9 billion in Total Value Locked (TVL).
Technical indicators show strong momentum, with the Relative Strength Index (RSI) at 80.58, indicating possible entry into overbought territory, and a bullish MACD pattern reflecting increased buying pressure. Analysts highlight that if ETH decisively moves above the $2,380 resistance and sustains above support levels around $2,060–$2,420, a new bull rally could ensue. Despite this positive momentum, risks persist relating to network scalability and potential application migration to competing chains. Ethereum leadership is reportedly working on strategies to retain ecosystem value as decentralized applications (dApps) continue evolving.
In summary, sustained spot-driven momentum, validator profitability, and robust technical charts point to ongoing strength in the Ethereum market, with optimism that a new price peak may be within reach if resistance levels are broken and sentiment remains positive.