Over the past few days, Ethereum has experienced a strong recovery rally, rising below $2,000 to nearly $2,700. ETH may be set to continue its rise to $3,000 in the near future for three specific reasons, despite some of the spikes being attributed to general market momentum. There was one of the largest accumulated spikes over the years, with addresses between 10,000 and 100,000 ETH.
These wallets usually belong to the wealthy, funds and institutions. Rather than chasing prices, these organizations tend to position themselves ahead of major moves. The magnitude and speed of this accumulation indicate confidence in the mid-term Ethereum course. The important whale accumulation has historically come before the remarkable gatherings, and this time it appears to be no exception.
Staking activity has increased since the Ethereum Pektra upgrade, combining the Electra and Prague upgrade aspects. The fact that more ETH is locked in staking contracts suggests that investors are confident in the long-term sustainability of their networks and that there is a lower distribution supply. Furthermore, increased staking suggests that holders predict higher yields and short-term volatility declines, which supports bullish outlook.
We have reached an important milestone in the Ethereum tokenization of real world assets (RWAS). In May, Ethereum Mainnet’s US financial price skyrocketed by 12%, reaching $5 billion for the first time. This shows that Ethereum is more widely used by institutions as the backbone of actual finances. Ethereum’s growing popularity for physically regulated financial products is evidence of network scalability, security and long-term viability.
Technically speaking, a large capacity ETH is decisively broken at EMA levels of 50, 100, and 200. The May 11 pullback may offer a healthy reset before another leg upwards, but the RSI is still high, but not extreme. Not only is it possible, but if Ethereum maintains $2,500 in support, it could potentially move Ethereum to $3,000.
