23-5-2025 – The cryptocurrency market is witnessing a remarkable renaissance for Ethereum, as the second-largest digital asset displays compelling signs of upward momentum. Technical analysts have identified a promising ‘bull flag’ formation on daily charts, traditionally a harbinger of continued price appreciation.
The digital currency has experienced a dramatic recovery, climbing an impressive 56% to reach $2,734 by 23 May—its highest valuation in eight weeks after bottoming at $1,750 earlier this month. This resurgence coincides with burgeoning network engagement, as daily transactions have swelled by 37% over the past month, returning to levels not witnessed since January.
Transaction fees have similarly responded to heightened demand, reaching a three-month peak of 0.0005 ETH (approximately $1.33) on 22 May. Historically, such intensified network utilisation has preceded significant price appreciation, reminiscent of patterns observed during the decentralised finance explosion of 2021.
The capital committed to Ethereum’s ecosystem reflects growing investor confidence, with total value locked (TVL) in smart contracts expanding by 44% since late April to reach $65.3 billion. This impressive growth has been particularly pronounced across specific protocols, with Pendle witnessing a 51% increase in deposits, whilst Ether.fi and EigenLayer recorded 48% growth respectively.
Ethereum continues to dominate the layer-1 blockchain landscape, commanding a formidable 54% market share by TVL—substantially outpacing competitors Solana and BNB Chain, which hold 8% and 5% respectively. Institutional interest remains robust, with US-listed spot Ether ETFs attracting $249 million in net inflows during a recent nine-day period.
Respected cryptocurrency analyst Michael van de Poppe suggests that maintaining support above the $2,400 threshold could propel Ethereum toward $3,500 and potentially beyond. The technical bull flag pattern indicates a possible 56% surge from current levels, potentially approaching the psychologically significant $4,000 mark.
