Ethereum has shown a significant recovery of over 50% in May, with on-chain data providing valuable insights into the shifting sentiments of Ethereum investors post-Pectra upgrade. Analysts are now anticipating a rise in price levels following the observed data metrics.

The data includes metrics such as ETH withdrawals from exchanges, exchange reserves, and accumulation by ETH whales, all of which have hit noteworthy milestones over the past month.

In the last month, more than 1 million ETH has been withdrawn from centralized exchanges, resulting in a decrease from over 18 million to nearly 17 million ETH available on these platforms. This pattern indicates a growing trend of users opting to accumulate Ethereum rather than engaging in trading activities, potentially fueled by the recent Pectra upgrade. Notably, over 300,000 ETH were withdrawn solely from Binance in the same period, with a total of over 800,000 ETH withdrawn from the platform since the start of the year.

The correlation between decreasing exchange reserves and increasing ETH prices is evident from the data, implying a positive relationship between supply and price.

Moreover, significant inflows into accumulation addresses, particularly a record accumulation of over 325,000 ETH by whale wallets on May 12, intensify the bullish sentiment. Such accumulation typically leads to withdrawing ETH from exchanges, reducing circulating supply, and adding upwards pressure on price.

Based on a bullish technical pattern emerging in May, analyst TedPillows predicts that ETH could soon reach $3,000, a significant psychological level.

Despite positive on-chain indicators, Ethereum's price still has further to go to surpass previous highs. TedPillows remains optimistic about Ethereum's future performance, emphasizing its security, Total Value Locked (TVL), and potential to outperform Solana in the near future.

Many experts speculate that Ethereum may eventually surpass Bitcoin, especially given its growing prominence in real-world assets (RWA) and the expanding DeFi ecosystem.