The ETH rebound has helped change the overall discussion in the Ethereum market. Since their April low, the cryptocurrencies’ prices have risen 95%, and they have reestablished the $2,500 point.

Because of the rise from $1,336 to around $2,613, investor confidence has been restored. It makes people wonder if Ethereum is in the beginning of a new bullish trend or if it’s just experiencing a rebound after macro strains let up.

Key-Takeaways:

• We have seen prices climb 95% higher since April because of the ETH rebound and a return of investor confidence. People wonder if Ethereum is launching a fresh bullish trend or simply bouncing off its low point.
• Strong indicators on price charts, as well as the Pectra upgrade, rising trading volume, and growing institutional interest, make a rebound possible with higher price targets ahead.

Technical Factors Behind the Bounce in the Price of ETH

From May 8 to May 10, three upward-trending candles made the ETH rebound stronger. As a result, a “triple white soldier” formation was created, indicating a powerful increase in demand.

The rapid decline after the reversal also gave the price a rounding bottom look, suggesting an upturn could happen. Some analysts believe the price could rise by 81% and reach the $4,570 mark.

The ETH rebound has made the price go above the 200-day EMA, suggesting that the upward trend might continue. Even so, RSI levels indicate that buyers are strong, although it may lead to a minor sell-off in the near future.

It also points out some of the reasons companies may be forced to sell. According to Coinglass, there are $786 million in short bets at $2,586, and a minor 3% rise in ETH prices could cause a short squeeze and push it even further.

What Helped ETH Start to Reverse its Trend

The ETH rebound is consistent with important updates that increase what Ethereum offers. Past rallies depended on leverage, yet data suggests this one is driven more by people buying crypto in the open market over the past month.

Such growth in users means the rally is not as likely to reverse all at once. It represents more environmentally friendly trading because of its steady growth.

Similarly, the rise in spot ETF flows is backing the ETH rebound. ETH started to move around three weeks ago after it surged 12% in just 24 hours, from $1,580 to $1,770.

The recent announcement of the Pectra upgrade plays a big role in the ETH rebound. This update is the most important major change to Ethereum’s protocol since the 2022 Merge.

It provides enhancements that improve the efficiency and speed of the network. As a result of this upgrade, Layer-2 users can now send twice as much data, which reduces clogging and makes fees go down.

Users of Pectra can now use stablecoins like DAI and USDC to pay for gas when they transact on Ethereum. This also means that companies can now operate validators with much larger stakes, making it more profitable and efficient.

Ethereum had a price of $1,700 before the Layer 2 upgrade was launched. This launch is happening at the right time, as ETH Rebound is happening, so market sentiment towards scalability is improving.

The Institutional View on the ETH Comeback

According to Bernstein, the ETH rebound is driven by the interaction of several aspects. Analyst Gautam Chhugani states that earlier competition from other platforms made Ethereum take on a powerful but central role.

Its user base took more time to interact with, and it was not as appealing to institutions as Bitcoin. But things are starting to look different as a result of the ETH rebound phase.

People are becoming increasingly interested in using stablecoins and tokenizing real-world assets, which is helping Ethereum. More Layer-2 networks are being built, which is accelerating the movement forward.

Ethereum is growing more considerably in the $22 billion industry that deals with real-life tokenization thanks to the ETH Rebound event. More than half of all stablecoins now live on Ethereum, showing its central role in controlling settlement activities.

Big names in the financial world, such as BlackRock and Franklin Templeton, are helping spur the adoption of digital assets. Their hard work strengthens and expands the base of Ethereum’s infrastructure.

Also, the Layer-2 community around Ethereum is increasing. The strong demand for Base from users resulted in $84 million in revenue last year.

Bernstein mentions that hedge funds used ETH as a way to protect themselves from risks. But they reduced their ETH holdings and continued to buy Bitcoin or Solana. When Ethereum grows closer to being used for real applications, people are closing their short positions. This has nicely pushed forward the ETH Rebound.

More analysts and institutions are now putting out bullish forecasts following the ETH Rebound. According to VirtualBacon, ETH might go up to $10,000 if Bitcoin gets to $200,000 and the ETH/BTC ratio becomes 0.05 again.

In cases where BTC goes very high, ETH could hit $12,000 if the ratio of ETH/BTC reaches 0.06. This forecast implies that the ETH rebound could start a fresh period of growth in the market, not just a small temporary recovery.

Forecasts made by large organizations confirm the same. VanEck, the asset manager, has said that ETH might reach $6,000 by the year 2025.

More details about ETH Rebound can be gathered by looking at technical indicators. The Analyst Titan of Crypto points out that ETH just filled a big CME gap at $2,540 and $2,620.

#Ethereum $3,200 Soon? 📈

On the #ETH CME Futures daily chart, the gap between $2,540 – $2,620 has now been filled ✅

Only one remains above:
🕳️ $2,890 – $3,230 ⏳

Gaps tend to get filled. pic.twitter.com/zCTsR36tvf

— Titan of Crypto (@Washigorira) May 13, 2025

There is another zone between $2,890 and $3,230 waiting to be filled, which could work as a demand zone if the trend turns up. The lines at $2,718 and $2,878 are places where trading volumes are expected to spike.

The higher prices may be triggered by these levels, which are in a supply zone on the 3-day chart between $2,750 and $2,820.

Conclusion

As a result of the ETH rebound, prices are now near $2,600, suggesting that more upside may appear in the market as long as things remain optimistic. As exchange reserves go down and 67 million ETH are getting close to profitability, the recovery relies on Bitcoin-to-Ethereum funds and advancements in Ethereum’s scalability.