Ethereum has significantly increased in value following the successful deployment of the Pectra upgrade, sparking heightened investor interest.
Ethereum's Surge After Pectra Upgrade
Ethereum (ETH) rose nearly 29% from $1,939 to over $2,400 in one day, marking its sharpest single-day gain in almost four years.
Impact of the Pectra Upgrade
On Wednesday, Ethereum developers successfully deployed Pectra, a major network upgrade aimed at enhancing scalability, staking efficiency, and user experience. This upgrade includes account abstraction, increased validator flexibility, and improved Layer 2 compatibility, designed to optimize Ethereum for both end users and infrastructure providers.
"ETH is finally catching up after lagging behind BTC for most of the year," said Min Jung, research analyst at Presto Research. "The recent Pectra upgrade has helped restore some confidence, and with ETH/BTC down nearly 40% YTD, it’s not surprising to see buyers stepping in at these levels."
Market Conditions and Ethereum's Outlook
The rally also coincides with improving macro sentiment. Bitcoin crossed $100,000 this week after President Donald Trump announced a trade agreement with U.K. Prime Minister Keir Starmer, easing some investor fears about global tariff escalation. Sentiment in the market has shifted, and traders are increasingly positioning for further gains in altcoins amid renewed optimism.
"Traders believe the crypto industry may have finally found its second wind," said Nick Ruck, director at LVRG Research.
With Ethereum back above $2,300, the focus is on whether this rally can sustain. Analysts point to the combination of positive protocol developments and macro-driven demand as key drivers.
