TLDR:
- Ethereum has surged over 40% in the past two weeks, trading around $2,550
- The rally appears to be driven by spot market demand rather than leveraged trading
- ETH stakers are back in profit for the first time since March
- Flat funding rates suggest this may be a sustainable uptrend
- ETH dominates as the largest on-chain economy with over $213.9 billion in TVL
Ethereum has experienced a comeback in recent weeks, with its price climbing more than 40% over the past two weeks. At press time, ETH trades at $2,550, continuing its upward trajectory with a 3% gain in the past 24 hours.
The current rally shows promising signs of sustainability. According to CryptoQuant analyst ShayanMarkets, ETH funding rates have remained relatively flat despite the price surge. This indicates the upward movement is powered by genuine buying in the spot market rather than speculative leverage.
Funding rates reflect sentiment in the perpetual futures market, with these periodic payments exchanged between traders to keep contract prices aligned with spot prices. The flat rates during this rally suggest less risk of sudden reversals triggered by mass liquidations.
For the bullish momentum to continue, analysts suggest funding rates should begin to rise, showing increased confidence and more aggressive positioning by futures traders.
Staking Profitability Returns
A positive development for the Ethereum ecosystem emerged on May 9th when staked ETH returned to profitability for the first time since March. When ETH crossed the $2,297 mark, it surpassed the realized price, flipping stakers back into profit territory.
This recovery strengthens network stability by reassuring validators and staking participants. The return to profitability could signal a larger bullish shift across the entire Ethereum ecosystem.
Ethereum continues to dominate as the largest on-chain economy, with over $213.9 billion in Total Value Locked (TVL) across lending, staking, and other sectors. This extensive activity demonstrates Ethereum’s unmatched developer base and DeFi infrastructure.
The network’s dominance isn’t without risk, however. Incentives tied to scalability and app success create potential threats of app migration to competing chains. Ethereum’s leadership is reportedly working toward strategies to ensure value retention as apps evolve.
Technical Outlook
Technical indicators support the current rally. The Relative Strength Index (RSI) sits at 80.58, indicating strong momentum though perhaps entering overbought territory. The MACD shows a widening gap between the MACD and signal lines, a bullish signal reflecting increased buying pressure.
Crypto analyst Ali Martinez notes that if ETH can decisively break through the $2,380 resistance level, it could enter a new bull rally. Martinez emphasized that ETH’s critical support range now lies between $2,060 and $2,420, with close to 10 million wallets holding more than 69 million ETH between these levels.
#Ethereum $ETH moved past resistance. Send it! 🚀 https://t.co/fr0shbzReo
— Ali (@ali_charts) May 11, 2025
Although Ethereum remains below its all-time high of $4,878 reached in November 2021, market watchers believe a new peak could be approaching. Analyst Titan of Crypto recently noted that ETH is following a V-shape recovery pattern similar to Bitcoin’s trajectory.
With volume holding steady and sentiment turning optimistic following the staking profit recovery, Ethereum’s price may test higher resistance levels in the coming days. The cryptocurrency currently trades at $2,555, representing a 3% increase over the past 24 hours.
