Ether’s price has skyrocketed 20% in a mere 24 hours after the Pectra upgrade went live, sparking excitement and a flurry of activity among crypto traders. With Ethereum now trading at $2,230, according to CoinMarketCap, this rapid ascent has caught many by surprise, especially given the asset’s previously wavering sentiment throughout 2025.
Pectra’s Impact and Market Reaction
The Pectra upgrade, which launched on May 7, is being hailed as a significant milestone for Ethereum. It introduces a slew of enhancements like new wallet features, increased staking limits, and much-needed scalability improvements. These changes have been eagerly anticipated by the crypto community, and their implementation seems to have injected a fresh wave of confidence into Ether’s potential. For more on the visionary roadmap that includes Pectra, see Vitalik Buterin’s vision for Ethereum: Pectra, Glamsterdam and beyond.
Crypto trader Alex Krüger remarked on May 8 that the price surge was primarily driven by “new longs,” as traders rushed to capitalize on the momentum. The Open Interest (OI) for Ether saw a 21% leap, underscoring the burgeoning interest. However, not everyone was positioned for this uptick. Approximately $328 million in Ether short positions were liquidated, illustrating just how unprepared many were for this explosive move.
Beyond the Upgrade: Broader Market Dynamics
While the Pectra upgrade is a pivotal factor, Nick Forster, founder of on-chain options protocol Derive, suggests that the surge is due to a cocktail of influences. The recent US trade deal with the UK, which saw tariffs slashed on British cars and steel, is one such factor. Additionally, Coinbase’s acquisition of Deribit for $2.9 billion has injected even more optimism into the market.
Interestingly, Ether’s rally coincided with Bitcoin’s resurgence, which climbed 3.59% over the same period and reclaimed the $100,000 mark on May 8. The entire crypto market mirrored this positivity, with a 4.95% increase and the Crypto Fear & Greed Index advancing into “Greed” territory, now at a score of 73.
Despite the buoyancy, Ether’s momentum has yet to translate into spot Ether ETFs, which have posted outflows for the third consecutive day. On May 8, these outflows totaled $16.1 million, according to Farside data. This anomaly raises questions about whether the ETF market is lagging or simply cautious in the face of recent volatility. As Ethereum bulls show renewed interest, traders’ confidence in ETH’s $1.8K level is improving, as detailed in Ethereum bulls show interest as traders’ confidence in ETH’s $1.8K level improves.
Historical Context and Future Projections
Ether’s performance in 2025 has been a rollercoaster. The asset had plummeted 56% from its January 1 price of $1,472 to its lowest point this year on April 9. However, the recent rally has seen it climb 52% over the past 30 days, offering a glimmer of hope to beleaguered investors.
Historically, Ether enjoys a strong second quarter, averaging a 62.2% return since 2013. If this pattern holds true, it could potentially reach around $2,950 by the end of June. Still, the market remains on edge, with traders like Bob Loukas contemplating whether this could finally be the “turning point” for Ether.
Looking Forward
As Ether rides this wave of momentum, the pressing question is whether it can sustain such growth. The market’s optimism is palpable, yet the lingering uncertainties—such as ETF outflows and broader economic conditions—cast a shadow over the euphoria. Will Ether continue to defy the odds, or are we witnessing a temporary spike?
Only time will tell, but one thing is clear: the crypto landscape is as dynamic and unpredictable as ever, keeping traders and analysts alike on their toes. As we move deeper into 2025, all eyes will be on Ethereum to see if it can maintain its newfound strength in the months ahead.
Source
This article is based on: Ether clocks ‘insane’ 20% candle post Pectra — A turning point?
Further Reading
Deepen your understanding with these related articles:
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- US crypto groups urge SEC for clarity on staking
- Restaking can make DeFi more secure for institutional traders
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
