It has been over 3 months since the Pi Network’s open mainnet was launched after a long wait of over 4 to 5 years. In these months, the network has made some huge progress, including breaking into the top 20 crypto post-launch. Trending across social media platforms and boasting over 60 million users. Moving forward, Pi price appeared to be more secure with an increase in real-world adoption along with more exchange listings. However, the PI price has remained highly volatile, while heavy token unlocks have made it too risky to deal with.
Now that the bearish flags have been fluttering over the Pi price rally, will the bulls prevent excessive price drain?
After the rebound from the support below $0.7, the PI price appeared to have triggered a fine reversal. Meanwhile, a close observation suggests diverse price action. The token experienced two major spikes followed by liquidations, with a clear bearish setup leading to a decline of over 52%. In the long term, the outlook remains bearish with a target near $0.3, representing about an 80% potential downfall.
In a wider perspective, the PI price has remained under massive bearish influence, which portrays the Gaussian Channel. The price is trading much below the resistance of the channel. which is currently bearish. Besides, the CMF has triggered a bearish divergence while in an attempt to trigger a recovery. Moreover, the volume has dropped significantly, signalling a drop in trading activity. With this, the PI price seems to be preparing for another pullback, which may drag the price down by another 10% to 15%.
Will the PI price remain stuck within a bearish trend?
The PI price may undergo minor price variations in the short term, which could keep the token consolidated above the crucial support in the long term. Besides, the upcoming unlocks are expected to increase the volatility, which could, in turn, have a positive impact on the rally. However, to do so, the PI price is required to breach above $1 and sustain for a long time without undergoing a correction.
After a relatively flat April marked by decreased network demand and sideways price action, the second-largest cryptocurrency, Ethereum (ETH), may be positioned for a shift.
ETH holders are optimistic about May. This optimism is fueled by strengthening fundamentals, the anticipated Pectra upgrade, and renewed interest from institutional investors through spot ETH exchange-traded funds (ETFs).
ETH Struggled in April, but May Brings a Glimmer of Hope
In April, on-chain data showed a dip in user activity across the Ethereum network, while broader market stagnation kept ETH trading below key resistance levels.
According to Artemis, during the 30-day period, user demand for Ethereum plummeted, leading to a decline in the number of active addresses, daily transaction count, and consequently, its network fees and revenue.
This and the broader market downturn impacted ETH’s performance, causing the leading altcoin’s price to remain below the $2,000 mark throughout April.
However, in an interview with BeInCrypto, Gabriel Halm, a research analyst at IntoTheBlock, said that ETH’s price could break above the $2,000 price mark in May and stabilize above it.
For Halm, the improved capital inflows into ETH spot ETFs, Ethereum’s dominance in the coin’s decentralized finance (DeFi) vertical, and its upcoming Pectra upgrade could help bring this to fruition.
ETF Inflows, DeFi Dominance, and Pectra: Triple Boost for Ethereum in May
According to SosoValue, monthly net inflows into ETH ETFs totaled $66.25 million in April, signaling a shift in market sentiment compared to the $403.37 million in net outflows recorded in March.
Total Ethereum Spot ETF Net Inflow. Source: SosoValue
This reversal from heavy outflows to modest inflows suggests that investor confidence in the altcoin is gradually returning. It indicates that institutional players may be positioning for a longer-term rebound, especially as Ethereum’s network fundamentals begin to improve, one of which is its climbing dominance in the DeFi sector.
Over 50% of the total value locked (TVL) in DeFi protocols still resides on the Ethereum blockchain. This means that the Layer-1 (L1) remains the preferred settlement layer for various financial applications, including lending, staking, yield farming, and decentralized exchanges.
Therefore, in May, if broader market conditions begin to improve, renewed capital inflows into Ethereum’s DeFi sector could, in turn, drive up demand for ETH and support its price rally.
Moreover, according to Halm, Ethereum’s upcoming Pectra upgrade, set to launch on May 7, 2025, could further aid ETH’s price performance this month. The upgrade promises to enhance the network’s scalability, reduce transaction fees, improve security, and introduce smart account functionality.
These improvements may fuel a surge in user demand throughout May, potentially lifting ETH’s price, provided macroeconomic conditions remain favorable.
ETH’s Growth Hinges on Broader Market Stability
Despite this, the broader economic pressures pose a significant risk to ETH in May. Halm noted that “the upcoming CPI report on May 13th will be particularly important, potentially influencing market sentiment and contributing to this volatility.”
This is because inflation or hawkish signals from the Federal Reserve could worsen the risk-off sentiment in the crypto market, putting pressure on ETH’s price.
Halm also pointed out that ETH’s price remains tightly correlated with US equities. Therefore, if equity markets face renewed stress this month due to inflation fears or rate hike expectations, the altcoin may come under similar pressure.
ETH’s Historical Correlation to S&P 500. Source: IntoTheBlock
“Looking ahead to May, if this high correlation persists, it implies that Ethereum’s vulnerability to market downturns and inflation-related pressures would likely be similar to that of traditional risk assets like those in the S&P 500. A downturn in the general market or increased concerns about inflation impacting equities could therefore negatively affect ETH’s price,” said Gabriel Halm, research analyst at IntoTheBlock,
While a sustained push above $2,000 remains possible, any rally will likely depend on inflation trends, risk sentiment in traditional markets, and how tightly ETH remains tied to equities.
Robert Kiyosaki, author of Rich Dad Poor Dad, has issued a strong warning about the state of the U.S. economy. Amid these concerns, Kiyosaki has predicted BTC price could surge to between $500,000 and $1 million amid Bitcoin setting a new all-time high today. Robert Kiyosaki Concerns Over U.S. Bond Auction Robert Kiyosaki’s recent comments were triggered by a U.S. Treasury bond auction held on May 20. The Rich Dad Poor Dad author stated that no buyers appeared at the auction and alleged the Federal Reserve had to purchase $50 billion worth of bonds itself. The U.S. Treasury Department, however, released data showing a bid-to-cover ratio of 2.97, with $212.58 billion in bids and $74.38 billion accepted. Only $4.38 billion was awarded to the Federal Reserve’s account, according to the official records. This suggests participation was higher than Kiyosaki implied. Despite this, Robert Kiyosaki warned that this event signals a… Read More at Coingape.com
Today, the crypto market is expected to be highly volatile as all eyes turn to the U.S. Federal Reserve’s upcoming policy decision. The Federal Open Market Committee (FOMC) is holding its scheduled meeting on May 6–7 to assess the economic outlook and understand the future of U.S. interest rates. The FOMC, led by Chair Jerome Powell
Jerome Powell Jerome Hayden “Jay” Powell is an American attorney and investment banker who has served since 2018 as the 16th chair of the Federal Reserve
Finance
will announce its decision at 2 PM Eastern Time on May 7 (11:30 PM IST).
Initially, there were expectations of a full percentage point of cuts due to concerns over Trump tariffs. But now they expect a smaller 0.75% cut for the year. Powell has repeatedly said that the Fed needs to wait for clarity on Trump’s policies before making any decision.
Some analysts also believe the Fed could signal the end of Quantitative Tightening (QT), a policy that has been draining liquidity from markets since 2022. Treasury Secretary Scott Bessent will meet Chinese officials in Switzerland this weekend to discuss any possible tariff changes.
As the US and China are looking to ease the ongoing trade tensions, Bitcoin has already started climbing again, reaching around $97,000, and many altcoins are turning green as traders prepare for possible positive news. Although Bitcoin dominance remains high—now above 65%, this could shift soon, opening the door for altcoin season.
Bitcoin is showing signs of recovery, and the price is now approaching a resistance zone between $96,100 and $97,400. If Bitcoin can hold above $95,300, the upward trend could continue, possibly forming a stronger move higher.
So far, the current bounce is looking good, but it’s too early to confirm a full trend reversal. A pullback could still happen, and how the price reacts next will help confirm whether this recovery continues or if more downside is coming.
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Today, the crypto market is expected to be highly volatile as all eyes turn to the U.S. Federal Reserve’s upcoming policy decision. The Federal Open Market Committee (FOMC) is holding its scheduled meeting on May 6–7 to assess the economic outlook and understand the future of U.S. interest rates. The FOMC, led by Chair will …
