Ethereum’s market sentiment has changed markedly as Polymarket’s forecast market shows that cryptocurrency is 72% likely to exceed $2,500 on May 16, 2025.
This jump represents a 22% spike in trader trust, driven by recent daily growing optimism and increased trading activity. Emotional changes reflect a broader trend in which traders are recalibrating their outlook, based on both technical indicators and market psychology.
Polymarket forecasts show a large number of investors’ convictions
Source: polymarketcap
In addition to the increased odds, the market is gaining a lot of attention. The trading volume for this particular forecast reached $674,720, indicating strong participation and conviction among speculators.
Interestingly, this surge to confidence suggests that despite Ethereum’s short-term dip, investors may be focusing on long-term fundamentals rather than daily fluctuations.
Related: ETH Outlook is brighter: hedge funds shift to prefer Ethereum
ETH Price Action and important technical levels to watch
At the time of writing, Ethereum is trading at $2,554.71, indicating a daily decline of 2.86%. The drop follows a sharp turnaround from the recent high of nearly $2,650. The chart pattern shows a series of highest and lowest values in a series. This generally indicates a short-term trend of bearishness. However, the larger picture may tell a different story.
The levels of support and resistance are more defined. Immediate resistance is $2,595, with a level that has recently refused to advance prices. Additional resistance was $2,625, at local height before the current pullback. If the Bulls can push prices above this zone, they could mark the start of a short-term gathering.
On the downside, the main support was $2,525, and the price bouncing back earlier. The more important level is $2,500. This zone carries both psychological weight and technical importance. Faults below this could open the door to further losses and could erode recent bullish feelings.
Momentum Indicator: ETH, MACD, over-acquired by RSI, is still bullish
ETH/USD Daily Price Chart, Source: TradingView
From an indicator perspective, the RSI is currently 72.25, placing it on territory where Ethereum has been over-acquired. This suggests that short-term pullback or price integration is possible. Although excessive conditions often precede market corrections, they do not always indicate long-term debilitating.
Related: ETH prices remain strong above $2.5,000 despite the wild exchange flow and a huge $1.2 billion withdrawal
Meanwhile, the MACD remains in bullish alignment, with the MACD line above the signal line. The crossover shows ongoing upward momentum, but a drop in price action could quickly weaken this signal. The narrow gap between these lines can indicate a shift in momentum if price support is not retained.
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