In a remarkable turn of events, Ether has experienced a notable 20% surge within the last 24 hours following the highly anticipated launch of the Pectra upgrade. This sudden shift in momentum has sparked discussions among crypto traders, many of whom suggest that the increasing number of long positions in ETH could signify a significant turning point for the cryptocurrency that has dealt with uncertain market sentiment throughout the course of 2025.
At the time of writing, Ether (ETH) is trading at approximately $2,230, reflecting a substantial increase of 19.6% over the same 24-hour period, according to data from CoinMarketCap. Renowned pseudonymous trader Daan Crypto Trades described the price movement as a “pretty insane candle”. Notably, during this period, Ether’s Open Interest (OI) spiked by an impressive 21%.
The Impact of the Pectra Upgrade
This upward momentum closely follows the implementation of the long-awaited Pectra upgrade, which went live on May 7. The upgrade not only enhances wallet functionalities but also introduces increased staking limits and improvements in scalability for the Ethereum network.
Prominent crypto analyst Alex Kruger indicated that the surge in Ether’s price was primarily driven by new long positions entering the market. He highlighted that if Ether were to retract back to the $2,000 level, approximately $2.06 billion in long positions would be at risk of liquidation, as reported by CoinGlass.
The rapid price increase has caught numerous traders off guard, leading to the liquidation of about $328 million in Ether short positions during this timeframe. As noted by crypto trader Bob Loukas, there exists a sense of optimism among ETH holders, who are hopeful that this might finally represent a pivotal moment for the cryptocurrency.
Despite the positive momentum, 2025 has not been particularly kind to Ether’s price, with a stark decline of 56% observed from its January 1 price of $1,072 to $1,472 by April 9, marking the year’s lowest point amidst growing market uncertainties.
During the same period of Ether’s rally, Bitcoin (BTC) also saw a commendable increase of 3.59%, managing to reclaim the $100,000 threshold for the first time in over three months.
In discussions with Cointelegraph, Nick Forster, founder of the onchain options protocol Derive, attributed Ether’s price surge to a combination of factors beyond just the Pectra upgrade. Forster pointed to geopolitical developments, including a recent trade deal between the US and the UK that involved tariff reductions on British automotive and steel products, as well as Coinbase’s acquisition of the crypto exchange Deribit for $2.9 billion.
Historically, Ether has averaged a 62.2% return in the second quarter since 2013. Based on its price on April 1, if past performance serves as an indicator, Ether could potentially reach around $2,950 by the end of June.
However, it’s worth noting that this momentum has yet to be reflected in the spot Ether ETFs market. For the third consecutive day, outflows totaling $16.1 million were reported from these ETFs on May 8, according to Farside data.
Simultaneously, the broader cryptocurrency market experienced a boost in both prices and sentiment, following Bitcoin’s ascent. Over a 24-hour period, the cryptocurrency market as a whole surged by 4.95%, with the Crypto Fear & Greed Index pushing further into “Greed” territory, gaining another 8 points to register a score of 73.
This post does not serve as investment advice or recommendations. All investment and trading actions involve risk, and readers should perform their own due diligence before making any decisions.
