Ethereum Surges 5% as Pectra Upgrade Boosts Value

Ethereum (ETH) has surged by nearly 5% in the past 24 hours, reaching $2,655 per token. This rally is part of a broader trend where Ethereum has outperformed other top cryptocurrencies, with gains of 63.1% over the past month. The Pectra upgrade, which introduced several changes to the blockchain’s infrastructure, has catalyzed this major rally. The upgrade includes an increase in the number of blobs that can be included per ETH block, enhancing the efficiency of layer-two blockchains like Arbitrum. Additionally, Pectra makes ETH a deflationary token by burning a portion of the network’s gas fees, further boosting its value.

The Pectra upgrade has made the Ethereum blockchain much more competitive, positioning it favorably against rival smart contract platforms like Solana (SOL) and Sui (SUI). These changes are expected to favor a bullish ETH price forecast, as the upgrade addresses key issues that have threatened Ethereum's market share in the decentralized finance (DeFi) space.

ETH is currently breaking out of a bullish flag pattern in the daily chart, which could result in significant gains in the near term. The 21-day exponential moving average (EMA) is poised to make a bullish crossover above the 200-day EMA, a pattern that previously led to a 26% price increase and a surge near the $4,000 level. The key resistance level to watch is $2,850. If the price bounces back from this level, it will confirm a bullish outlook. Based on the flag’s pole, Ethereum could rise to $3,600 within a month.

While Ethereum may not reach $10,000 during this bullish cycle, its upside potential remains substantial following the successful implementation of the Pectra upgrade. The upgrade has positioned Ethereum to maintain its dominance in the DeFi space, making it a strong contender against emerging competitors. The deflationary nature of ETH, combined with its enhanced efficiency, sets the stage for continued growth and investment in the Ethereum ecosystem.