Ethereum prices have skyrocketed almost 20% over the past 24 hours to reclaim $2,200, marking a two-month high. The asset reached $2,234 during Friday morning trading in Asia, climbing from below $1,900 just a day earlier. Over the past fortnight, Ethereum has gained a remarkable 26%, and its month-over-month performance shows even more impressive growth of over 50%, recovering from bear market lows around $1,400.
The significant price increase comes on the heels of the much-anticipated Pectra update, which went live on the Ethereum mainnet on May 7. This upgrade has sparked renewed optimism among investors and analysts alike.
Ethereum’s Best Day Since 2021
According to CoinGlass, more than $280 million in short ETH positions were liquidated over the past 24 hours, resulting in Ethereum’s best day since 2021, as highlighted by Bankless on May 9. While this strong performance stands out, it is essential to note that ETH has experienced similar price surges previously. For instance, between May 20 and 22 last year, Ethereum saw a 23% increase from $3,070 to just below $3,800. Furthermore, from November 6 to 10, it surged nearly 30% from $2,400 to over $3,100.
With the recent bounce off the lows, analysts are beginning to adopt a bullish stance on Ethereum’s future. Prominent crypto trader MMCrypto projected a target of $3,700 if ETH returns to the top of the wedge pattern it has formed. This outlook reflects an increasing confidence in Ethereum’s potential as market dynamics shift.
ETHEREUM TARGET: $3’700 pic.twitter.com/hNJkh4AajX
— MMCrypto (@MMCrypto) May 9, 2025
Cas Abbé, a Web3 growth manager, noted that the Pectra upgrade has been incredibly successful. Hours after the rollout, ETH’s annual inflation rate dropped from 0.7% to -0.5%, indicating a return to deflationary issuance. This change has contributed to the recent surge in ETH’s value.
Abbé further elaborated that the increase in daily ETH burn—doubling since the Pectra upgrade—plays a crucial role in the asset’s upward momentum. As he stated, “If ETH burn increases, the supply issue will be resolved, and it will eventually attract demand too. It feels like $3K ETH in Q2 is coming.”
“We all know that ETH has been underperforming this entire cycle, due to a lack of demand and increasing supply. If ETH burn increases, the supply issue will be resolved, and it will eventually attract demand too. It feels like $3K ETH in Q2 is coming.”
Ethereum’s Pectra Upgrade has been really successful.
Hours after the Pectra Upgrade, ETH annual inflation dropped from 0.7% to -0.53%.
In simple terms, ETH has turned deflationary again.
Also, daily ETH burn has doubled since Pectra Upgrade, which is the reason behind ETH’s… pic.twitter.com/5uOJ4uLPMw
— Cas Abbé (@cas_abbe) May 8, 2025
Stablecoin and Tokenization Gold Rush
As the cryptocurrency space evolves, the stablecoin and tokenization gold rush is poised to drive a significant wave of new adoption for crypto in the coming years. Ethereum educator Anthony Sassano remarked, “At the center of it all is Ethereum—the home of stablecoins and tokenized real-world assets.” This highlights Ethereum’s pivotal role in the continuing expansion of the blockchain ecosystem.
Ethereum has established itself as the industry standard for real-world asset tokenization. According to data from RWA.xyz, Ethereum commands a 58% market share for tokenized assets, amounting to nearly $7 billion on-chain, excluding stablecoins. When incorporating stablecoins, Ethereum maintains its leadership position with a 55% market share of real-world asset tokenization, followed by Tron at around 30%, which is primarily attributed to Tether.
In conclusion, the recent surge in Ethereum’s price and the successful implementation of the Pectra upgrade highlight the asset’s resilience and potential for growth. As Ethereum continues to lead in tokenization and stablecoins, it is set to allow for further adoption and innovation in the crypto space.
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