In a dramatic turn of events, Ethereum (ETH) skyrocketed over 22% within the past 24 hours, reclaiming the $2,200 mark and igniting renewed optimism across the crypto market. This surge follows the successful completion of the long-anticipated Pectra upgrade, marking a pivotal moment in Ethereum’s evolution. Alongside ETH’s rally, major altcoins like Virtual, EIGEN, and SUI also saw gains nearing 50%, signaling a potential shift in market momentum.
While a 22% gain may seem modest compared to double-digit jumps seen in smaller altcoins, it's worth noting that Ethereum hasn’t experienced such a sharp 24-hour increase since May 23, 2024—when a similar spike was driven by the U.S. SEC’s approval of spot Ethereum ETFs. This time, however, the catalyst appears to be a combination of technical upgrades, macroeconomic developments, and strong on-chain positioning.
👉 Discover how Ethereum's latest upgrade is reshaping the future of decentralized applications.
Market Sentiment Still Cautious Despite Gains
Despite Bitcoin briefly flirting with the $100,000 milestone, market sentiment remains surprisingly restrained. The Bitcoin Fear & Greed Index hovers around 70—classified as "greedy," but notably lower than previous peaks above 80 seen in December 2024 and January 2025 when bullish euphoria dominated.
This relatively tempered sentiment suggests that many investors remain cautious, potentially setting the stage for further upside. Historically, sustained rallies in altcoins have often followed periods where Bitcoin’s price stabilized while broader confidence built gradually. With Ethereum now leading the charge, analysts are watching closely for signs of an incoming Alt Season.
Pectra Upgrade: A New Era for Ethereum
On May 7, 2025, Ethereum successfully executed its first major upgrade since Cancun—Pectra—a dual-layer enhancement combining Prague (execution layer) and Electra (consensus layer) improvements. The upgrade introduced 11 new EIPs (Ethereum Improvement Proposals), laying the groundwork for greater scalability, security, and usability.
Key features include:
- Increased validator stake limit: EIP-7251 raises the maximum staking amount per validator from 32 ETH to 2,048 ETH, enabling larger participants to operate more efficiently and improving network participation.
- Enhanced blob storage: EIP-7691 doubles the number of blobs per block from 3 to 6, effectively doubling data throughput and supporting Layer-2 rollups with cheaper and faster transactions.
- Optimized call data fees: EIP-7623 reduces gas costs for certain smart contract operations, making dApps more affordable to run.
- Secure validator exit mechanism: EIP-7002 allows validators to exit the network without requiring a hot wallet, enhancing security by reducing exposure to private key risks.
These upgrades collectively push Ethereum toward a more scalable and secure foundation. Though some critics have raised concerns about potential centralization due to higher staking thresholds, developers emphasize that the changes are designed to support future growth while maintaining decentralization.
With theoretical throughput now reaching up to 500 TPS, and further enhancements expected through upcoming Fusaka upgrades and Data Availability Sampling (DAS) technology, Ethereum is positioning itself as a robust base layer for mass adoption.
👉 See how next-gen blockchain upgrades are driving institutional interest in crypto.
U.S.-UK Trade Deal Sparks Speculative Moves
On May 8, 2025, former U.S. President Donald Trump announced a new trade framework between the United States and the United Kingdom during a speech at the Oval Office. While not a comprehensive agreement, it includes partial tariff rollbacks and maintains a 10% "reciprocal tariff" on select goods—a symbolic move following broader global trade tensions.
Interestingly, blockchain analytics firm Arkham Intelligence identified a whale wallet (0x175e...77b4) linked to Zixipay that received $10 million in USDT just before the announcement. Shortly after, this address began aggressively leveraging long positions on ETH/USD futures contracts.
As of the latest data, the wallet holds a massive $40 million open position** in ETH futures, currently sitting on unrealized profits of approximately **$4.5 million. This coordinated move suggests that macroeconomic signals—especially those involving major economies—are increasingly influencing crypto trading strategies.
What’s Next for Ethereum? Expert Outlooks
Crypto Rover: ETH Is Still Undervalued
Renowned crypto analyst Crypto Rover argues that Ethereum remains significantly undervalued relative to Bitcoin. He points to the ETH/BTC MVRV (Market Value to Realized Value) ratio, which is currently at historic lows—similar to levels seen before previous bullish cycles.
“When ETH/BTC hits these zones, we often see strong rebounds or extended periods of outperformance,” he tweeted, highlighting green-marked areas on his chart where past rallies began.
His analysis implies that even after the recent surge, Ethereum could still be early in a broader upward trajectory.
Raoul Pal: “The Market Has Fruitiness”
Raoul Pal, CEO of Global Macro Investor, described the current market environment as having “fruitiness”—a metaphor for ripeness and readiness for growth. While expecting short-term volatility, he believes the bull run could extend into August 2025, with a secondary correction likely around that time before a final leg higher in 2026.
“Enjoy the fruit—but do so rationally,” Pal cautioned, urging investors to avoid FOMO-driven decisions despite strong momentum.
CryptoAmsterdam & Crypto_Twittier: Alt Season on the Horizon?
Researcher CryptoAmsterdam compared Ethereum’s price action to Bitcoin’s historical trend channels and suggested that if ETH can firmly hold above the $2,000 level—a key psychological and technical support—it could trigger a broad Alt Season.
Meanwhile, analyst Crypto_Twittier noted that although ETH has broken out of its downtrend, it faces immediate resistance at $2,196. A confirmed breakout above this level would strengthen bullish sentiment and accelerate capital rotation into altcoins.
This marks the 18th time Ethereum has crossed $2,000. The question remains: Are your E-Guardians—long-term ETH holders—still standing strong?
Frequently Asked Questions (FAQ)
Q: What caused Ethereum’s 22% surge?
A: The rally was driven by the successful Pectra upgrade, improved market sentiment, speculative leveraged trades linked to macro events like the U.S.-UK trade deal, and growing expectations of an altcoin season.
Q: Is the Pectra upgrade centralized Ethereum?
A: While EIP-7251 increases staking limits, core developers stress that decentralization is preserved through improved node efficiency and enhanced security protocols like EIP-7002.
Q: Can Ethereum sustain momentum above $2,200?
A: Technical indicators suggest strength, especially if it clears $2,196 resistance. Holding above $2,000 consistently could signal start of an Alt Season.
Q: What is Alt Season?
A: Alt Season refers to a market phase where altcoins significantly outperform Bitcoin in terms of price growth and investor interest, often following Bitcoin stabilization.
Q: How does blob scaling affect everyday users?
A: Increased blob capacity lowers transaction fees on Layer-2 networks (like Arbitrum or Optimism), making DeFi, NFTs, and gaming apps cheaper and faster to use.
Q: Was the U.S.-UK trade deal directly responsible for ETH’s rise?
A: Not directly—but it triggered strategic moves by large traders who interpreted it as a positive macro signal, amplifying upward pressure during an already bullish setup.
👉 Explore real-time market data and track Ethereum’s next breakout zone.