Key Notes
- Amid enough demand, ETH could reverse its current direction, staging a rally to $4,000-$5,000.
- Large investors, including Abraxas Capital and Ethereum whales, have significantly increased their holdings, with over 450,000 ETH accumulated in the past month.
- The ETH/BTC ratio has rebounded 38% from its five-year low, indicating Ethereum may be undervalued relative to Bitcoin.
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Following strong gains to $2,700 last week, Ethereum is facing a pullback as the ETH price plummets 5% in the last 24 hours, slipping under $2,500 levels. This pullback comes amid a broader crypto market decline with investors evaluating as what happens next.
Ethereum Price Pullback, Analysts Eye $1,800 as Key Support Zone
Popular analyst Crypto Patel believes that Ethereum price could see a potential pullback following its rejection near the $2,500 Fair Value Gap (FVG) zone. The analyst further added that ETH is now entering a correction phase, with the price likely to drop into the $1,930–$2,100 FVG range.
As per Crypto Patel, this zone aligns with a bullish order block near $1,810, wherein we can see heightened accumulation and chances of re-entry by investors. However, the analyst states that if Ethereum manages to stage enough demand at this level, it could pave the way for a rally toward $4,000–$5,000 in the next bullish cycle.
$ETH Pullback Loading: Is $1,800 the Next Big Buy Zone?#Ethereum faced rejection near the $2,500 FVG zone and is now entering a correction phase.
Price may drop into the $1,930–$2,100 FVG zone, which aligns with a strong bullish order block around $1,810.
This area is a… pic.twitter.com/tExGXoojfZ
— Crypto Patel (@CryptoPatel) May 17, 2025
However, investors should keep in mind that the recent Ethereum price rally comes along with heavy ETH accumulation by institutional players. In a massive accumulation, Abraxas Capital bought over $650M in the past few weeks, marking one of the biggest institutional purchases of ETH.
Crypto analyst Ali Martinez reports a significant surge in Ethereum accumulation by whales over the past month. According to on-chain data, large investors have collectively added over 450,000 ETH to their holdings during this period.
Whales have accumulated over 450,000 #Ethereum $ETH in the past month! pic.twitter.com/iog41CbHLo
— Ali (@ali_charts) May 17, 2025
ETH/BTC Pair Screams of Undervaluation
Blockchain analytics platform CryptoQuant highlights a significant recovery in Ethereum’s performance against Bitcoin. The ETH/BTC ratio has surged by 38% from its five-year low, suggesting that Ethereum may have bottomed out compared to the leading cryptocurrency.
Ethereum may have hit bottom vs Bitcoin.
The ETH/BTC ratio just surged 38% from a 5-year low. Demand is rising, selling pressure is falling, and ETFs are loading up.
This could signal the beginning of an Alt season. pic.twitter.com/dosAgvW6UE
— CryptoQuant.com (@cryptoquant_com) May 16, 2025
Some of the key indicators driving this momentum include the rising demand for ETH, the declining selling pressure, and the growing accumulation by Ethereum-focused ETFs. As per the data from Farside Investors, spot Ethereum ETFs accumulated $22 million worth of ETH on Friday, highlighting renewed market optimism.
On the other hand, Ethereum Layer 2 solutions continue to make progress. Earlier this week, Starknet hit the milestone to become the first Layer-2 ZK-rollup network to reach Stage 1 decentralization.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
