Ether (ETH) has seen a massive rally following the Ethereum Pectra hard fork , surges nearly 20% in just 24 hours . Analysts and traders are now speculating whether this could mark a long-awaited turning point for Ethereum after months of sideways movement and bearish sentiment.
ETH Price Jumps to $2,230 Amid Strong Onchain Activity
At the time of writing, Ether is trading at $2,380, up 23.2% over the past 24 hours , according to CoinMarketCap data. The rally followed the successful activation of the Pectra upgrade on May 7 , which introduced major enhancements including improved staking mechanics, better wallet integrations, and enhanced scalability features.
The surge caught many traders off guard. Crypto analyst Daan Crypto Trades described the price action as a “pretty insane candle,” referring to the sharp and rapid uptick in ETH’s value.
Open Interest Rises 21%, Short Squeeze Looming?
Alongside the price rally, Ether open interest (OI) jumped by 21% , signaling increased participation from futures traders. Over $328 million in short positions were liquidated during the spike, suggesting that bears were caught offside by the bullish momentum.
If ETH were to drop back to $2,000 , another $2.06 billion in long positions would be at risk of liquidation, per data from CoinGlass.
Crypto trader Alex Kruger noted that the rally was largely fueled by “new longs” entering the market post-upgrade. Meanwhile, veteran trader Bob Loukas speculated: “ETH holders thinking this might finally be the turning point.”
Pectra Upgrade: More Than Just a Technical Update
The Pectra upgrade marks one of the most anticipated developments in Ethereum’s roadmap in 2025. It combines two major Ethereum Improvement Proposals (EIPs): EIP-4844 (Proto-Danksharding) and EIP-6110 (consensus layer improvements) , aiming to reduce transaction fees and improve network efficiency for both retail and institutional users.
This upgrade also allows for better integration with smart contract wallets , making it easier for decentralized applications (dApps) and Layer 2 solutions to scale more efficiently.
Ether’s Performance in 2025: From Slump to Surge
Despite a rocky start to the year, where ETH fell 56% from its January high to a low of $1,472 on April 9 , the asset has since rebounded strongly. In the last 30 days alone, Ether has gained over 52% , outperforming many altcoins and even Bitcoin.
Notably, Bitcoin also saw a strong move upward, climbing above $100,000 on May 8 for the first time in three months — rising nearly 6% in the past week . This broader market optimism likely contributed to Ether’s rally.
Broader Market Impact and Institutional Moves
Nick Forster, founder of onchain options protocol Derive , told Cointelegraph that Ether’s rally wasn’t only driven by the Pectra upgrade but also by external macroeconomic factors, including the U.S.-UK trade deal , where President Donald Trump announced reduced tariffs on British steel and cars.
Additionally, the acquisition of Deribit by Coinbase for $2.9 billion added fuel to the bullish fire, boosting confidence across the digital asset space.
Historical Trends Suggest Room for Further Gains
Historically, Ether has averaged a 62.2% return in Q2 since 2013 . If this trend continues, ETH could reach around $2,950 by the end of June , based on its April 1 price.
However, not all signs are bullish yet. According to Farside Investors, spot Ether ETFs recorded outflows for the third consecutive day on May 8, totaling $16.1 million , indicating cautious institutional sentiment.
Market Sentiment Turns Greedy Again
The overall crypto market also experienced a significant boost. In the past 24 hours, the total market cap surged 4.95% , while the Crypto Fear & Greed Index moved further into “Greed” territory, rising 8 points to 73 .
Final Thoughts: Is This ETH’s Breakout Moment?
While the Pectra upgrade appears to have acted as a catalyst, the confluence of positive macro news , increased onchain activity , and improved investor sentiment suggests that Ether may finally be emerging from a prolonged consolidation phase.
Whether this marks a sustained bull run or a temporary pump will depend on how well Ethereum maintains support above key levels like $2,000–$2,100 , along with broader adoption and institutional inflows in the coming weeks.
