In the past 24 hours, Ethereum has finally broken its usual pattern, bringing a 22% increase following the recent Pectra upgrade, and has now regained the $2,200 mark. Alongside this, altcoins such as Virtual, EIGEN, and SUI have also seen around a 50% increase within the same timeframe.
Compared to the 22% increase of other altcoins, it may seem modest, but the last time Ethereum recorded a rise of over 22% in 24 hours was back on May 23, 2024, when the price surged from about $3,100 to nearly $3,900, marking an increase of approximately 25%. The primary reason for that surge was the SEC's approval of a spot Ethereum ETF. So, what is driving this current explosive rise?
In the past 24 hours, 200,000 people globally were liquidated, with significant losses for BTC and ETH short sellers, providing substantial fuel for the bulls in this rally, burning a total of $679 million in just one day. The largest single liquidation occurred in the BTCUSDT trading pair on Binance, valued at $11.9692 million.
Sentiment Remains Low
Even with Bitcoin's price breaking $100,000, the Bitcoin Fear and Greed Index remains low at around 70. Previously, in December last year and January this year, when Bitcoin's price exceeded $100,000 and was poised to break historical highs, the index had surpassed 80. The ongoing low sentiment may be one reason the market is choosing to remain bullish on mainstream coins.
Pectra Upgrade
On May 7, 2025, Ethereum completed its first major upgrade since the Cancun upgrade—Pectra. During the live stream of the upgrade, all participating core members displayed refreshing smiles, much like today's Ethereum holders.
The upgrade includes the Prague hard fork for the execution layer and the Electra optimization for the consensus layer, introducing a total of 11 EIPs. Key improvements include raising the validator staking cap from 32 ETH to 2048 ETH (EIP-7251), enhancing Blob data processing capabilities (EIP-7691), and optimizing call data fees (EIP-7623).
The number of Blobs has doubled to 6, with theoretical TPS increasing to 500. Subsequent upgrades like Fusaka and DAS technology are expected to achieve even greater scalability. Despite the rapid development of L2, Vitalik pointed out that L1 performance remains the foundation for decentralization and asset interaction. Additionally, through EIP-7002, validators can securely exit the mainnet without needing hot keys, enhancing the system's security and stability.
Although there are many concerns about increased centralization following the upgrade, the Pectra upgrade has indeed laid a foundation of high performance, strong security, and low costs for Ethereum, preparing it for the "new" Ethereum era and subsequent large-scale applications.
Market Outlook
Well-known Crypto YouTuber Crypto Rover believes that Ethereum is still being overly undervalued, supported by the accompanying chart. Currently, the MVRV ratio of ETH/BTC and its price are at historical lows. In past similar phases, indicated by the "green area" in the chart, ETH's price often rebounded or entered a relatively strong cycle.
Raoul Pal, CEO and founder of Global Macro Investor, is relatively optimistic, stating that the current market has a "fruity feel." Although there may be brief and intense corrective fluctuations, the trend should continue until around August. He also cautioned the market to "enjoy the fruit rationally" and does not believe that August will be the peak of this cycle, but rather that the second phase of correction should occur in August before entering a bear market or the final surge leading up to 2026.
Renowned researcher CryptoAmsterdam released a trend range chart similar to that of Bitcoin, suggesting that if ETH can successfully stabilize around the current $2,000 "low point," it will bring about an Alt Season for the market.
Meanwhile, Crypto Predictions' "Crypto_Twittier" believes that although ETH has already broken the downward trend, it will encounter resistance at $2,196 before the Alt Season, and only after breaking through this correction will the Alt Season commence.
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