Ethereum Surges 50% to $2,700 Post-Pectra Upgrade

Ethereum's price has surged nearly 50% to over $2,700 following the implementation of the Pectra upgrade, bringing it close to the levels seen during Eric Trump's public promotion of the asset. This significant rally has positioned Ethereum around 6% below its peak during Trump's endorsement.

Eric Trump's bullish sentiment towards Ethereum was expressed in a February 3 post, where he tweeted, “In my opinion, it’s a great time to add $ETH. You can thank me later.” This statement was later edited to remove the final sentence. His post came at a time when the market was experiencing a selloff due to President Trump’s tariff proposal, during which Ether lost more than 15% over February 2 and 3, bottoming out at around $2,300.

Despite brief recoveries, the downturn intensified amid mounting fears of escalating trade tensions and inflation, following Trump’s early April announcement of sweeping tariffs. On April 7, Ether briefly fell below $1,400—its lowest level since November 2023. The current price rally is fueled by the activation of the Pectra upgrade on May 7, renewed bullish sentiment driven by positive developments in US-China trade relations, and rising institutional accumulation.

The Pectra upgrade introduces a suite of Ethereum Improvement Proposals (EIPs) designed to enhance staking efficiency, wallet usability, and layer 2 scalability. This upgrade helps lay critical groundwork for Ethereum’s next phase of network growth. The upgrade represents a pivotal step for the platform, advancing user-friendliness and enabling systematic, programmable staking. Ethereum has surged more than 40% in the five days since the upgrade went live.

On the institutional front, a UK-based investment firm has acquired 211,030 ETH, valued at approximately $477 million, over the past six days. This significant institutional investment reflects growing confidence in Ethereum's future prospects and the potential for further price appreciation. The surge in Ethereum's price highlights the importance of network upgrades in driving the value of cryptocurrencies, as well as the impact of external factors such as market sentiment and regulatory developments.