On May 19, 2025, Ethereum (ETH) formed a falling wedge pattern on the 4-hour chart. A falling wedge is a bullish reversal pattern where the price moves between two downward-sloping, converging trendlines, signaling weakening selling pressure.
If Ethereum confirms a breakout above the upper trendline, it could surge 50% from the current level of $2,376 to nearly $3,564.
The chart also shows that Ethereum surged earlier in May, then entered consolidation while respecting the wedge structure. The 50-period Exponential Moving Average (EMA) now sits at $2,456, slightly above the current price. This proximity suggests potential support.
Meanwhile, the Relative Strength Index (RSI) remains at 39.20, indicating ETH trades in oversold territory, which often precedes upward moves.
The volume has declined as the wedge narrowed, which aligns with the pattern’s typical behavior. A sudden spike in volume could confirm a breakout.
Ethereum must close above the $2,500 resistance line with strong volume to activate the measured move. If that happens, the projected target sits near $3,564, based on the wedge height.
Ethereum BBTrend Turns Negative After 58 Percent Rally
On May 18, 2025, Ethereum’s Bollinger Band Trend (BBTrend) flipped negative, dropping to -0.02 after remaining above zero for more than seven days.
This shift follows a sharp peak of 28.39 on May 12, which marked the strongest reading of Ethereum’s bullish momentum during its recent rally. The BBTrend, or Bollinger Band Trend, tracks momentum by showing how far price movements deviate from their average range within Bollinger Bands. Positive values signal upward strength, while negative values suggest weakening buying pressure or the start of a bearish phase.
Ethereum climbed approximately 58.5% over the past month, but the BBTrend histogram now shows a clear reversal. After a steady build-up in green bars through May 11–13, the bars began shrinking, and the indicator declined consistently until it crossed below zero on May 18.
If this trend continues, it could signal the end of Ethereum’s bullish phase. A prolonged stay in negative territory may indicate sideways action or a price retracement. This shift also suggests that traders are likely adjusting their positions, reducing risk after the rally, and waiting for a new catalyst to confirm direction.
Ethereum Whale Wallets Drop Below Key Support
Meanwhile, Ethereum’s whale wallet count has declined. Wallets holding between 1,000 and 10,000 ETH, often seen as major market movers, had remained above 5,440 since mid-April. The count reached 5,463 on May 8.
However, over the past 10 days, that number steadily decreased. It now stands at 5,393. This is the first time it has dropped below 5,400 since April 9. That level had served as a historical and psychological support for large holders.
The change in whale activity may indicate reduced confidence among big investors. When the number of whales rises, it usually suggests accumulation and strong long-term positioning. But a decrease may signal that whales are distributing tokens, taking profits, or waiting for clearer signals before re-entering the market.
The combination of a negative Bollinger Band Trend (BBTrend) and declining whale wallet count signals weakening bullish momentum for Ethereum. Although ETH recently outpaced other major digital assets, including Bitcoin, these indicators now point to a possible shift in market behavior. The drop in momentum and whale activity suggests Ethereum could enter a consolidation phase or face increased volatility as investor sentiment becomes more cautious.
Ethereum Developers Propose EIP 7928 to Boost L1 Performance
Recently, Ethereum developers introduced a new upgrade proposal called EIP 7928, also known as “Block-Level Access Lists” or BALs. This proposal aims to make Ethereum’s Layer 1 (L1) faster and more efficient by allowing transactions to run in parallel.
EIP 7928 includes a technical system where each block contains a list of all addresses and storage keys used during that block, along with their final values after execution. These lists act like “cheat sheets” for validators. By knowing exactly what data each transaction touches, validators can quickly check blocks without scanning the full data themselves.
As a result, Ethereum can validate transactions faster, open the door for parallel transaction execution, and possibly raise gas limits in the future. These changes would help Ethereum process more transactions per second and reduce bottlenecks on its base layer.
The proposal adds three new parts to Ethereum’s block structure:
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The Block Access List (BAL), which links each transaction to the addresses and data it touches.
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Indices showing transaction order.
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Final values of accessed data after the block is processed.
Ethereum researcher Toni Wahrstätter explained that BALs let validators work more efficiently. Instead of checking each transaction one by one, they can use the BAL to run multiple checks at the same time. He added that this could lead to shorter block times and higher gas limits—both signs of improved network speed.
Meanwhile, Ethereum continues its upgrade roadmap. After activating the major Pectra hard fork on May 7, 2025—which improved staking and added smart account features—developers are now working on the Fusaka upgrade, expected later in 2025.
The Fusaka upgrade will introduce PeerDAS, a tool to lower Layer 2 (L2) costs by improving how off-chain data is shared. It will also include new tools for smart contract security.
While some developers focus on scaling through L2 networks, EIP 7928 shows that core contributors are also committed to improving Ethereum’s base layer directly.
