TL;DR

Industry participants reminded that May has been a historically strong month for Ethereum, with some expecting a significant surge if key resistance levels are breached. ETH outflows from exchanges have increased in the last seven days, suggesting investors are moving to self-custody often seen as a bullish sign due to reduced selling pressure.

Where Next for ETH?

The second-largest cryptocurrency in terms of market cap experienced a substantial pump on a 14-day scale, rising by 16% and currently trading at over $1,800. Despite the resurgence, its overall performance in the last several months remains unsatisfactory.

The popular X user Carl Moon revealed to his 1.5 million followers on X that Ethereum (ETH) has been falling for five months in a row. In February, for instance, the price collapsed by nearly 32%.

Carl Moon, however, pointed out that May has historically been one of the most positive periods for the asset. ETH has posted losses in only three out of ten Mays throughout its history. The ongoing month has also delivered the highest average gains over the years around 27.31%.

X user SHERIFF shared a similar thesis. They outlined that ETH bled out in seven out of the last eight months. The negative performance was also combined with low sentiment and dead volatility. On the other hand, these are the times when the next big move brews, the analyst claimed.

For his part, Merlijn The Trader made an interesting comparison between Bitcoins performance in 2020-2021 and Ethereums recent structure. He predicted a potential price explosion if history is on our side, adding that hes loading ETH.

In 2020, Bitcoin consolidated at $8K…

Most ignored it. Then it hit $64K.

Today, Ethereum is showing the exact same structure.

Accumulation. Compression. Explosion loading.

I’m loading $ETH. History is on our side. pic.twitter.com/0PEtoWGNze

CRYPTOWZRD chipped in, too, projecting a potential short-term scenario. The analyst set $2,120 as the next key resistance target, envisioning a quick move toward $2,800 if the asset breaks through. 

Abandoning Exchanges

One factor that supports the optimistic predictions outlined above is ETHs exchange netflow.

Outflows have dominated over inflows in the past week, signaling that investors have shifted from centralized platforms toward self-custody methods. This development is generally bullish for the price since it reduces the immediate selling pressure.

ETH Exchange Netflow, Source: CryptoQuant