Ethereum (ETH) has experienced a remarkable 20% surge in the past 24 hours, driven primarily by the successful launch of the Pectra Upgrade on May 7. The upgrade introduced new wallet features, increased staking limits, and enhanced scalability, fueling renewed optimism among traders who believe the cryptocurrency may be approaching a critical inflection point after months of bearish sentiment.
$ETH On track for its best daily gain since 2021.
— Daan Crypto Trades (@DaanCrypto) May 8, 2025
Pretty insane candle. pic.twitter.com/fz9SCsZ6JF
Ether Price Pump Catches Traders Offside
At the time of writing, Ether is trading at $2,230, up 19.6% over the past 24 hours, according to CoinMarketCap data. Pseudonymous crypto analyst Daan Crypto Trades described the price movement as a “pretty insane candle,” while Open Interest (OI) for ETH spiked by 21% in the same period. The surge also led to approximately $328 million in Ether short positions being liquidated, catching many traders off guard.
Despite the rally, market analysts warn of potential risks. Crypto trader Alex Kruger noted that the surge was largely driven by new long positions, raising concerns of a potential retracement. According to CoinGlass data, if Ether were to dip back to $2,000, approximately $2.06 billion in long positions would face liquidation risk.
Broader Market Impact and Long-Term Outlook
Nick Forster, founder of Derive, suggested that the rally was not solely attributed to the Pectra Upgrade but also influenced by macroeconomic factors, including the recent U.S.-UK trade deal that saw tariffs on British cars and steel reduced. Meanwhile, Coinbase’s $2.9 billion acquisition of Deribit further fueled positive sentiment in the crypto sector.
Historically, Ether has averaged a 62.2% return in the second quarter. If history repeats, ETH could potentially reach $2,950 by the end of June based on its April 1 price. However, outflows from spot Ether ETFs, totaling $16.1 million as of May 8, indicate that institutional investors remain cautious despite the recent uptrend.
$ETH holders thinking this might finally be the turning point.
— Bob Loukas 🗽 (@BobLoukas) May 8, 2025
I guess you can always hope. pic.twitter.com/JtSV2i5tL4
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Tether Mints $1 Billion USDT on Tron: Is Ethereum’s Stablecoin Dominance Under Threat?
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
