Ethereum Surges 40% In Week, Whales Accumulate $337M

Ethereum has shown a remarkable resurgence in 2025, with its price surging past the $2,600 mark this weekend. This significant return comes after a disappointing start to the year, where the altcoin closed the first four months at a loss. The recent price performance has been particularly impressive, with ETH experiencing an over 10% increase in the past 24 hours and a more than 40% increase over the past week.

A popular trader on the social media platform X has highlighted several factors contributing to Ethereum's strong position. The trader, known as Axel Bitblaze, believes that Ethereum could overtake Bitcoin in the coming months. One of the key reasons cited is BlackRock’s reported purchase of 7,976 ETH, worth about $18.9 million, and their push for staking exchange-traded funds. Bitblaze suggests that the approval of ETF staking could introduce real, yield-generating institutional demand, which could significantly boost Ethereum's value.

Another factor contributing to Ethereum's momentum is the accumulation of ETH by whales. On-chain data indicates that whales have purchased 138,511 ETH, worth about $337 million, in the past 48 hours. This accumulation, combined with $434 million in short liquidations, has brought considerable momentum to the Ethereum price. Additionally, more liquidity seems to be flowing into the Ethereum token than Bitcoin, with ETH’s trading volume surpassing BTC’s volume for the first time in years.

The Ethereum Pectra upgrade, which went live on May 7, is also seen as a deflationary factor behind ETH’s future potential. According to Bitblaze, in just a few days, approximately 38,000 ETH has been burned, increasing deflationary pressure. This upgrade is expected to enhance Ethereum's scalability and security, further boosting its value.

Despite the bullish outlook, Bitblaze advises investors to exercise caution. The market sentiment appears overheated, with the Fear & Greed Index at extreme greed, which often precedes minor price pullbacks. However, Bitblaze remains optimistic, believing that the stars are aligning for Ethereum. If this trend continues, the trader predicts that the ETH price could reach $2,800 or even $3,000 before seeing any major correction.

In summary, Ethereum's recent price surge past $2,600, coupled with positive on-chain data and institutional interest, suggests a strong bullish momentum. The Ethereum Pectra upgrade and increased liquidity further support this optimistic outlook. However, investors should remain cautious due to the overheated market sentiment. The future of Ethereum looks promising, with the potential to overtake Bitcoin in the coming months.