Ethereum Flashes Bullish Morning Star Candlestick Pattern – Is ETH Rally Getting Started?

While Ethereum (ETH) has posted impressive gains of 37.7% over the past month, the second-largest cryptocurrency by market capitalization still remains over 33% below its June 2024 levels. However, recent technical and on-chain indicators suggest that ETH may be on the verge of a significant breakout.

Ethereum Prints Bullish Morning Star Candlestick Pattern

In a post on X earlier today, crypto trader Merlijn The Trader highlighted a potentially bullish development on the Ethereum monthly chart. According to Merlijn, ETH has printed a Morning Star candlestick pattern – often regarded as a strong bullish reversal signal. 

For the uninitiated, the Morning Star is a bullish reversal pattern that appears after a downtrend, signaling a potential shift to upward momentum. It consists of a large bearish candle, a small candle showing indecision, and a strong bullish candle that closes well into the first candle’s body.

Beyond technical indicators, Ethereum is also seeing growing interest from institutional investors. A recent CoinShares report revealed that global crypto exchange-traded products (ETPs) saw $286 million in net inflows during the week ending May 30. Ethereum-based ETPs were a key contributor to this trend.

Data from SoSoValue further confirms this momentum. In May 2025 alone, spot Ethereum exchange-traded funds (ETFs) recorded total net inflows of $564 million – up sharply from $66 million in April.

In addition, an increasing number of entities continue to stake their ETH on the network. In a separate X post, crypto analyst Ted Pillows outlined how Abraxas Capital had staked ETH worth $7.5 million earlier today.

To recall, Ethereum staking involves locking up ETH to help secure the Ethereum network and validate transactions, a core part of its proof-of-stake consensus mechanism. In return, stakers earn rewards, typically paid out in ETH, for participating in network operations.

Important To Hold This Support Level

Veteran crypto analyst Ali Martinez emphasized the importance of the $2,550 support level, noting that ETH must hold above this threshold to sustain its bullish momentum. If it does, Martinez predicts a possible push toward the $2,650 level.

In line with this sentiment, fellow analyst Titan of Crypto suggested that ETH may be gearing up for a run to $3,800, citing a breakout from a bullish flag pattern on the daily chart. The analyst also pointed out that ETH is currently holding above its 200-day exponential moving average (EMA), which often signals continued upward movement.

Adding to the bullish case, nearly 300,000 ETH left Binance between mid-April and mid-May, potentially contributing to a supply crunch. At the time of writing, ETH is trading at $2,538, up 0.8% in the last 24 hours.

Featured Image from Unsplash.com, charts from X and TradingView.com