Ethereum (ETH) has experienced significant recovery in recent weeks, rising over 70% since April. With increasing demand from investors and institutional players, analysts predict further growth.
Ethereum's Recovery
As of May 10, 2025, Ethereum's price has surpassed $3,150, indicating a rise in investor interest after a low of $1,385 in April. Analysts believe that this momentum could signal the beginning of a broader rally this year.
Institutional Flows and Market Data
According to analysis by Merlijn The Trader, Ethereum's current setup mirrors the 2020 pattern of consolidation and subsequent growth. On May 9, 2025, Ethereum-based ETFs recorded a net inflow of $17.6 million. World Liberty Financial also confirmed a $3.5 million ETH purchase, indicating growing institutional involvement. Data from Etherscan shows that the Ethereum network processed over 1.2 million transactions within 24 hours, and trading volume rose by 35% to $18.4 billion.
Pectra Upgrade and Macro Trends
The recent Pectra upgrade introduced technical improvements, including higher validator limits and streamlined network participation. This led to an increase in staked ETH and a reduction in circulating tokens. Simultaneously, major stock indices like Nasdaq and S&P 500 showed gains, suggesting a renewed risk-on sentiment among investors. If the Federal Reserve changes its policy, it could create favorable conditions for digital assets like Ethereum.
Thus, Ethereum's 70% surge since April is driven by increased institutional interest and technological upgrades, potentially marking the beginning of a broader market trend.
