Ethereum recovered more than 50% in May. On-chain data provides new insights into the changing emotions of Ethereum investors after Pectra upgrades. As a result, many analysts are currently hoping for higher price levels.
This on-chain data includes replacement, replacement spares, and withdrawals of ETH from ETH whales accumulation. Over the past month, all these metrics have hit an impressive milestone.
Over 1 million ETHs have withdrawn from exchanges in the past month
According to Cryptorank, the amount of ETH available on centralized exchanges fell from over 18 million to nearly 17 million within a month.
Ethereum supply at the time of replacement. Source: Cryptorank
“Over the past month, over a million ETHs have been withdrawn from central exchanges, accounting for around 5.5% of the ETHs held on these platforms. This trend suggests that users are choosing to accumulate Ethereum rather than trading it.
The encrypted data shows that over 300,000 ETHs have been withdrawn from Binance alone in the past month. Since the beginning of the year, more than 800,000 ETH have withdrawn from the platform.
The withdrawal campaign accelerated not only when ETH prices fell sharply to $1,400 in early April, but also during the rebound of ETH above $2,400 in May.
Additionally, Cryptorank’s chart shows that ETH prices have risen while ETH prices have been raised.
Furthermore, large-scale accumulation addresses recorded the highest influx in history. Specifically, Cryptoquant reported on May 12 that it had accumulated more than 325,000 ETH. This is the highest daily fee ever recorded.
Influx of Ethereum into the accumulated address. Source: Cryptoquant
When whales accumulate, they often pull the esthetics out of the exchange and store them in a cold wallet. This reduces circulation supply and creates upward pressure on prices.
Meanwhile, based on the rare bullish technical patterns that emerged in May, analyst Tedpillows predicts that ETH could soon return to $3,000.
Ethereum Price Golden Cross. Source: TedPillows
“Eth Golden Cross has been confirmed. A $3,000 Ethereum will come next,” predicted Ted.
Arthur Hayes predicts Ethereum will surpass Solana
Despite these positive on-chain indicators, ETH prices are still far from their peak. It will need to rise another 70% to surpass the 2024 high, and more than double to reach a new all-time high.
Bitcoin analyst Planb recently labeled Ethereum as “centralising” and “pre-slip,” with Zach Lines claiming that ETH does not have a consistent economic narrative.
However, in an interview on May 18th, Arthur Hayes offered a different perspective. He admitted that ETH, which is often disliked, remains the safest blockchain at its highest total value (TVL). He believes ETH is quick to be better than Solana.
“I think Ethereum has a better performance outlook, mainly because it is so disliked. Everyone thinks Ethereum does nothing and does nothing right. But it still has the most TVL, the safest proof blockchain. Hayes explained.
Furthermore, many industry experts are moving further. They predict that ETH could ultimately outperform Bitcoin, particularly as Ethereum becomes the center of real-world assets (RWAs) and a wider system of rebellion.
