Ethereum’s flashing bullish morning star candlestick pattern – Is the Eth rally started?
Although Ethereum (ETH) has estimated an impressive growth of 37.7% over the past month, the second-largest cryptocurrency by market cap remains below its June 2024 level. However, recent technical and chain-chain indicators suggest that ETH may be on the verge of a major breakthrough.
Ethereum print bullish morning star candlestick pattern
In an article on X earlier today, trader Merlijn highlighted the potential bullish development on Ethereum’s monthly chart. According to Merlijn, ETH printed the Morning Star Candlestick pattern – often considered a strong bullish reversal signal.
For beginners, Morningstar is a bullish reversal pattern that appears after a downward trend, indicating a potential shift upward momentum. It consists of a large bearish candle, a small candle presenting a hesitant candle and a powerful bullish candle that blends well into the body of the first candle.
In addition to technical indicators, Ethereum also sees growing interest among institutional investors. A recent Coinshares report showed that global crypto exchange-traded products (ETP) had net inflows of $286 million in the week ended May 30. Ethereum-based ETP is a key factor in this trend.
Data from Sosovalue further confirms this momentum. In May 2025 alone, the total net inflow of spot Ethereum Exchange Funds (ETFs) was $564 million, up sharply from $66 million in April.
In addition, more and more entities continue to store their ETH on the network. In separate X posts, crypto analyst TED pillow Overview How Abraxas Capital stored ETH for $7.5 million earlier today.
In retrospect, Ethereum’s possession involves locking ETH to help secure the Ethereum network and verify transactions, which is a core part of its core proof consensus mechanism. In return, Stakers are rewarded for participating in network operations, usually paid in ETH.
Maintaining this level of support is important
Senior crypto analyst Ali Martinez emphasize The importance of the support level of $2,550 points out that ETH must remain above this threshold to maintain its bullish momentum. If so, Martinez predicts that it could push toward the $2,650 level.
Consistent with this view, cryptocurrency analyst Titan suggestion The ETH may be ready for the $3,800 pace, citing a breakthrough in bullish flag patterns on the daily chart. Analysts also pointed out that ETH is currently Keep Above its 200-day exponential moving average (EMA), the signal usually continues to move upward.
Added bullish cases, nearly 300,000 ETH left Binance between mid-April and mid-May has the potential to lead to supply tightening. At the time of writing, ETH traded at $2,538, up 0.8% over the past 24 hours.
Featured images from Unsplash.com, charts from X and TradingView.com
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