May has historically been kind to Ethereum, boasting some of its best price gains year-on-year. Coinglass data shows that this month has delivered an average return exceeding 27% for ETH – though past performance is no guarantee of future results. Analyst Cyclop believes this trend might repeat itself and predict a target price of $2,500 by the end of the month if momentum holds. However, on-chain indicators are also offering promising signals. The MVRV ratio, a metric comparing ETH’s current market value to its historical average, has dropped to levels last seen in 2020 – suggesting a potential for significant upward movement following this dip. Michaël van de Poppe, monitoring the metric, believes it represents undervalued prices, and whale activity is also increasing, with addresses classified as long-term holders seeing more than 22% growth from March to early May, demonstrating their commitment. The upcoming Pectra upgrade on May 7th adds further fuel to this bullish narrative, enhancing user experience and wallet functionality, which could attract new users. Finally, if the Federal Reserve’s interest rate decision is positive, it may act as a catalyst, accelerating Ethereum’s price surge. With historical patterns, potential undervaluation, strong market activity from whale investors, and the upcoming upgrade, ETH might be experiencing one of its most promising periods in recent months. However, macro factors like political developments remain to be addressed by investors.