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

Ash Tiwari
by Ash Tiwari
1 month ago
·
Posted in Ethereum
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

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. 

Source: Merlijn The Trader on X

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.

Related Reading: Is Ethereum Price Gearing Up For A Monster Rally? ETH Up 80% The Last Time This Happened

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.

ali
Source: ali_charts on X

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.

Related Reading: Bitcoin, Ethereum See Nearly $1 Billion In Exchange Outflows – Smart Money Positioning Ahead?

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.

ethereum
ETH trades at $2,538 on the daily chart | Source: ETHUSDT on TradingView.com
Featured Image from Unsplash.com, charts from X and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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