Ethereum on May 29, 2025: Bullish Outlook Amid Institutional Shifts

Ethereum surges 4% to $2,772, driven by institutional demand and network upgrades.

On May 29, 2025, Ethereum (ETH) has surged approximately 4% to $2,772, marking its highest price in recent months. This rise occurs despite bearish pressures in the broader cryptocurrency market, with Ethereum outperforming due to strong fundamental and technical factors. Technically, Ethereum has formed a bullish ascending triangle pattern after consolidating at the $2,500 support level. The Relative Strength Index (RSI) on the daily chart is around 69, indicating strong bullish momentum but not yet in overbought territory. Breaking the $2,780 resistance could propel Ethereum toward $3,000, though significant trading volume is needed for sustainability. Failure to break this resistance may lead to a pullback to the $2,500 support. A key driver of Ethereum’s growth is rising institutional demand. Reports indicate that Ethereum exchange-traded funds (ETFs) have seen net inflows exceeding $350 million in May, reflecting growing institutional confidence. Additionally, the recent Pectra network upgrade, which raised the staking cap to 2,048 ETH and improved transaction efficiency, has boosted on-chain activity. This upgrade has reduced gas fees and enhanced scalability, driving organic demand for Ethereum. However, macroeconomic factors remain a challenge. Recent banking authority statements about limited rate cuts have tempered expectations for rapid growth in high-risk assets. Moreover, some market whales are taking profits, potentially increasing selling pressure at resistance levels. Still, the decline in Ethereum’s exchange reserves to 18.7 million units, the lowest since August 2024, suggests a trend toward long-term holding. Analysts also note Ethereum’s decreasing correlation with Bitcoin, dropping from 0.7 at the year’s start to 0.05 by late May. This decoupling highlights Ethereum’s growing independence, which could benefit its long-term trajectory. Some forecasts project prices reaching $5,500 to $10,000 by the end of 2025, particularly if institutional flows and network innovations persist. Overall, Ethereum on May 29, 2025, is in a promising position. Traders should monitor key support and resistance levels and adopt risk management strategies, such as staggered buying near $2,500. While short-term resistance may slow growth, Ethereum’s mid-term outlook remains positive.