Ethereum Surges 64% in 19 Days, Driven by Pectra Upgrade and Investor Confidence
1min read Ethereum has recently experienced a significant surge, with a 64% increase over the past 19 days. This rally has been driven by a combination of factors, including growing investor confidence and the recent Pectra upgrade, which has attracted more than just retail staking participants. The decline in exchange reserves indicates substantial accumulation among holders, suggesting an early recovery for the second-largest cryptocurrency by market capitalization.
Ask Aime: What's behind Ethereum's 64% surge?
The Pectra upgrade has played a pivotal role in Ethereum’s growth, with a noticeable shift in staking inflow trends suggesting that confidence in Ethereum’s long-term prospects is strengthening. This provides a more stable foundation for further price increases. Additionally, the strong gains in ETF flows are indicative of growing investor interest, although there are concerns about potential profit-taking from previous high performances, which could create short-term volatility.
Traders are eyeing the critical price level of $2,800 as a key testing point. The percent supply in profit metric has recently dipped to levels not observed since November 2022, but a recent surge indicates increased profitability among long-term holders. This sentiment bodes well for Ethereum’s near-term outlook, even amid concerns of potential profit-taking. Data from Coinalyze emphasizes significant spot demand over the past month, propelling Ethereum’s rally. This organic growth pattern reduces the potential for widespread panic selling among short-term holders, highlighting a more sustainable upward trajectory.
The six-month ETH liquidation heatmap reveals substantial liquidity pockets at the $2,718 and $2,878 levels—critical thresholds that could serve as indicators for future price targets. This analysis indicates that the upward momentum may not consolidate until the price exceeds $3,000 substantially. As per the current price action, it appears that Ethereum might require a period of consolidation below $3,000 to build up the necessary momentum for the next significant move. Market watchers should remain alert as the situation evolves.
In summary, while Ethereum has shown remarkable growth and market resilience, traders should exercise caution as profit-taking can pose risks. Monitoring price levels of $2,800 and above will be critical in determining Ethereum’s next steps and potential upward movements. The increased spot ETH ETF flows are an early sign of a bullish phase, underscoring investor optimism. However, the market remains dynamic, and traders should stay vigilant to navigate the potential challenges ahead.
