#Ethereum Pectra Upgrade  Analysts Highlight 4 Reasons ETH Price Could Make a Strong Rise in May

Ethereum has been in decline for five consecutive months. However, it is entering May with increasing optimism. Historical trends, on-chain data, whale accumulation behavior, and upcoming technological upgrades provide a strong foundation for a potential price recovery.

Here are four main reasons why analysts believe ETH could make a strong rally in May.

Why Ethereum Could Make a Rebound in May 2025

The first reason stems from ETH’s historical price performance. According to the data, May is typically the best-performing month for ETH.

Over the years, ETH has returned an average of 27.36% in May, the highest of any month.

While not every May ends with gains, past trends suggest that the month generally brings positive sentiment and upward momentum. Given the current conditions, Cyclop expects ETH to continue its growth this month and reach its $2,500 target.

‘May is historically the best month for ETH. $2,500 by the end of the month,’ Cyclop predicted.

Another critical factor supporting a positive outlook is on-chain data, specifically the MVRV (Market Value / Realized Value) ratio. According to analyst Michaël van de Poppe, ETH’s MVRV ratio is currently at its lowest level since March 2020, when the COVID-19 pandemic severely affected the cryptocurrency market.

A low MVRV ratio indicates that ETH is undervalued relative to its on-chain value. This signal has only occurred six times in the last decade and has usually preceded major rallies. The chart also suggests that ETH could experience significant growth over the next 3 to 12 months.

The third positive sign is the recent whale accumulation behavior. Despite the decline in ETH’s price, investors have not abandoned their strategies, and many accumulation addresses remain in unrealized losses.

Instead, they have increased their ETH holdings.

On March 10, accumulation addresses held 15.5356 million ETH. By May 3, this number had risen to 19.0378 million ETH — a 22.54% increase.

ETH investors show strong faith in the asset, project, and ecosystem. Their on-chain behavior reflects structural belief and expectations of short-term value growth — consistent with Ethereum’s broader evolution,” analyst Carmelo_Alemán said.

Finally, Ethereum’s upcoming Pectra upgrade, scheduled for May 7, 2025, is adding to the market’s optimism. The upgrade aims to improve wallet usability and user experience. This could boost dApp adoption and support long-term ETH demand.

Meanwhile, May 7 is also the date of the FOMC meeting, where the Fed will announce its interest rate decision. If macroeconomic news is positive, it could boost ETH’s short-term gains along with other factors.

However, if the news is negative, it could complicate ETH’s price action in May.