Ethereum Surges 20.2% to $2,338.93 After Pectra Upgrade

Ethereum's Pectra upgrade has recently been successfully implemented, and it has significantly boosted the price of ETH. The world's second-largest cryptocurrency has surged by over 20%, reaching above $2,400, marking its biggest gain since 2021. This surge is a result of traders reacting positively to the protocol's ambitious network upgrade.

While other cryptocurrencies like Bitcoin and Solana have set new record highs this year, Ethereum has been struggling to surpass its lifetime peak of $4,878 set in November 2021. However, with the recent Pectra upgrade, Ethereum is finally showing signs of catching up. As of the latest data, Ethereum is up 20.2%, trading at $2,338.93 after hitting a local high of $2,448 earlier today. This double-digit jump represents Ethereum's biggest single-day gain since May 2021.

The upsurge follows the successful roll-out of the Pectra upgrade, the Ethereum network’s most significant overhaul since the Merge event in September 2022. The upgrade introduces significant changes to the network, setting the stage for its shift to focus on scaling and enhancing how the network operates across its expanding ecosystem. Specifically, the upgrade consolidates validator operations by increasing the staking limit from 32 to 2,048 ETH and consists of 11 separate Ethereum Improvement Proposals (EIPs).

According to Min Jung, a research analyst, Ethereum is finally catching up after lagging behind Bitcoin for most of the year. The recent Pectra upgrade has helped restore some confidence, and with ETH/BTC down nearly 40% year-to-date at 0.02, it’s not surprising to see buyers stepping in at these levels. Looking ahead, the Fusaka hard fork, slated for late 2025, could further boost ETH’s upside potential. Meanwhile, Ethereum creator Vitalik Buterin is betting that speeding up the Ethereum blockchain and making its infrastructure as simple as Bitcoin in the next five years could propel adoption.

Ethereum’s recent rally coincides with Bitcoin spiking 3% over the same timeframe, retaking the $103,000 price level amid renewed trade talks scheduled to happen in Switzerland between U.S. Treasury Secretary and officials. Moreover, President Donald Trump signed a trade deal with UK Prime Minister on May 8, signaling that global trade war tensions may be starting to ease. As for Ether, widely-followed crypto analyst Crypto Claws said in a recent post on the X social media platform that the ETH/USD pair was “primed for a bullish reversal.” The analyst has set the upside target for the asset between $2,500 and $3,500.