Call me Crazy, but Is a New ETH ATH Coming?

May 25, 2025

We just got back from a whirlwind trip to Washington, DC — yes, the wild one where we had dinner with President Trump. The media circus was real, and between interviews and the chaos, we barely had time to trade. But now that we’re home, rested (sort of), and catching up, there’s one chart calling for our attention: A potential ETH ATH..

While we were traveling, Bitcoin broke into a new all-time high territory. Naturally, we’re asking ourselves — is ETH next?

Ethereum Heats Up: Network Activity Surges

Ethereum’s price has been climbing fast. From a low of $1,750 on May 6, ETH shot up nearly 56% to $2,734 by May 23. This rebound lines up with Bitcoin’s ATH, but it’s not just piggybacking — Ethereum has its own momentum.

On-chain activity tells the story. Daily transactions on Ethereum jumped 37% over the past month, pushing the network to levels we hadn’t seen since January 2024. That was around the time the first US-based spot Bitcoin ETFs launched, sending ETH above $4,000 for the first time in years.

Transaction fees also hit a 90-day high of 0.0005 ETH (around $1.33) on May 22. That’s a clear signal: more people are using Ethereum. Whether it’s DeFi, NFTs, or DApps, users are flocking back. Historically, higher network activity like this often precedes bullish price action.

Study our series of trading guides to increase your edge.

Why Fees Matter for ETH Price

When more users interact with the Ethereum blockchain, the demand for ETH rises. That’s because ETH is needed to pay gas fees. Back in the 2021 DeFi craze, fees exploded to 0.015 ETH — and the price followed.

So rising fees aren’t just a pain for users — they can also hint at an incoming rally. More ETH being burned or used means more scarcity. Add in increasing usage, and you have a classic recipe for price growth.

Total Value Locked Is Booming

Another bullish signal comes from Ethereum’s TVL (Total Value Locked). In just under 30 days, TVL grew from $45.26 billion to $65.3 billion — a 44% increase.

What’s driving this? Activity on protocols like Pendle (up 51%), Ether.fi, and EigenLayer (both around 48%) show that capital is flowing into Ethereum-based applications again. Users aren’t just trading — they’re committing funds long-term.

Ethereum still leads the pack with 54% of TVL market share. Solana trails behind at 8%, and BNB Chain sits at just 5%. That dominance supports the case for ETH being undervalued, especially compared to BTC, which already hit a new high.

Spot ETFs Add Fuel to the Fire

The recent launch of US-listed spot Ether ETFs also boosted Ethereum’s outlook. Between May 13 and May 22, net inflows hit $249 million. That’s fresh institutional money entering the scene.

BlackRock alone holds $2.9 billion in ETH. Combined with upcoming regulatory clarity and ETF staking under SEC review, this adds a new layer of demand. Institutions are no longer hesitant — they’re hungry for ETH exposure.

Related: Study the charts of $DOGE

Chart Watch: Bull Flag Targets $4K

Technical traders have spotted a classic bull flag pattern on Ethereum’s daily chart. These setups often appear after a sharp price rise, followed by consolidation in a down-sloping range.

ETH broke out of the pattern when it crossed $2,550, which could imply a target near $4,000 — up 56% from current levels. Analyst Michael van de Poppe pointed out that as long as ETH holds support at $2,400, the next logical move is toward $3,500 and beyond.

Cointelegraph also noted that if this structure holds, we could see $3,600 before the end of May.

Exchange Supply Hits Decade-Low Levels

Here’s one of the most bullish metrics yet: only 4.9% of all ETH is sitting on centralized exchanges, the lowest in more than 10 years.

Investors are pulling ETH off exchanges and into self-custody. That’s usually a sign they’re in it for the long haul. In the last five years, 15.3 million ETH have been withdrawn. One million left exchanges just in the last month.

Whales are leading this shift. Since late April, large wallets added 450,000 ETH. As of May 10, whale wallets held 40.75 million ETH — a new high since March.

Institutions Keep Stacking

Institutional appetite is growing, too. According to SoSoValue data, ETH ETFs attracted $30 million in net inflows last month. The numbers show growing confidence in Ethereum’s long-term future.

Even with ongoing reviews around staking features, the optimism is there. If staking is greenlit, it could supercharge ETH demand further by offering passive yield to ETF holders — a feature Bitcoin can’t match.

Analysts Turn Bullish on ETH Outlook

Ali Martinez, another well-followed analyst, believes that breaking the $2,588 resistance level could push ETH quickly to $3,000. If momentum continues, a retest of the all-time high near $4,900 is in play.

With exchange supply low, on-chain activity up, TVL climbing, and institutional money flowing in — Ethereum’s setup looks strong.

So… ETH ATH Coming?

The question feels more valid than ever: is an ETH ATH coming?

While no one can guarantee the future, the signals are aligning. Network usage is spiking, fees are climbing, TVL is up, and exchange balances are down. Spot ETFs are pulling in millions. Whales are loading up. And ETH is showing bullish signs on the chart.

If support at $2,400 holds, it might just be a matter of time before ETH takes a shot at reclaiming $4,000 — and beyond.

Join us!

If you enjoy our content, consider signing up through our referral links. It helps us cover basic expenses and keeps the content free for everyone. It also gives us a bit of insight into how many people are actively trading, so we know when to double down on updates and guides. You can sign up on BloFin if you prefer a non-KYC exchange, or try Bybit, which is our go-to platform and the one we personally use for trading. Thanks for the support!