TLDR
- Ethereum surged 20% in 24 hours following the Pectra upgrade, trading at around $2,230
- The US-UK trade agreement helped drive the price increase, reducing trade tensions
- Exchange reserves decreased by 323,000 ETH since April 24, indicating strong buying pressure
- Bitcoin also rallied above $100,000 for the first time in three months
- The Pectra upgrade went live on May 7, introducing new wallet features and scalability improvements
Ethereum has experienced a dramatic price surge over the past 24 hours, climbing approximately 20% following the implementation of the Pectra upgrade and positive developments in global trade relations. This marks a potential reversal for the cryptocurrency after months of downward pressure in 2025.
The second-largest cryptocurrency by market capitalization is now trading at $2,230, reclaiming the important $2,000 psychological level. The price jump has caught many traders by surprise, leading to approximately $328 million in Ether short positions being liquidated.
The Pectra upgrade, which went live on May 7, has introduced new wallet features, increased staking limits, and scalability improvements to the Ethereum network. These technical enhancements have helped restore investor confidence in the blockchain’s future.
Beyond the technical upgrade, macroeconomic factors have played a key role in ETH’s price movement. President Trump announced a “full and comprehensive” trade agreement between the US and UK, which has helped ease global trade tensions.
The deal includes a reduced baseline tariff of 10%, with aluminum and steel being exempt from any levies. Trump also mentioned that the US is in advanced negotiations with many other countries, suggesting further trade agreements may be on the horizon.
Market Response and Trading Activity
The market has responded with enthusiasm to these developments. Ethereum’s open interest has spiked 21% over the same 24-hour period, reaching 12.08 million ETH (approximately $25.04 billion).
On-chain data reveals a strong increase in buying pressure. The cryptocurrency’s exchange reserve has decreased by 132,000 ETH in just four days, extending the total decline to 323,000 ETH since April 24. This reduction in exchange reserves typically indicates that investors are moving their ETH off exchanges for long-term holding.
Institutional interest has also picked up. Digital asset investment firm Abraxas Capital purchased 49,644 ETH using Binance and Kraken platforms, according to data from on-chain alerter Lookonchain.
Crypto trader Alex Kruger noted that Ether’s price spike was primarily due to “new longs,” suggesting growing optimism among investors. However, this optimism comes with risks – if Ether were to fall back to $2,000, approximately $2.06 billion in long positions could face liquidation.
This move on $BTC since upper 99ks largely driven by shorts getting liquidated or closing. $ETH is different, that's mainly new longs. pic.twitter.com/Ilb1eFJCrE
— Alex Krüger (@krugermacro) May 8, 2025
Technical Analysis and Future Outlook
From a technical perspective, Ethereum has found support at the $1,800 level, strengthened by both the 14-day Exponential Moving Average and 50-day Simple Moving Average. The cryptocurrency is now approaching the key resistance range between $2,100 and $2,250, which coincides with the 100-day Simple Moving Average.
If ETH can establish itself above this resistance zone, it could potentially rally toward the $2,550 level. Such a move would mark the beginning of a substantial recovery for the cryptocurrency.
Looking at historical patterns, Ether has averaged a 62.2% return in the second quarter since 2013. Based on its price at the beginning of April, this pattern suggests Ether could reach around $2,950 by the end of June.
The recent price action marks a welcome change for Ethereum holders after a challenging start to 2025. The cryptocurrency had fallen 56% from its January 1 price to $1,472 by April 9, reaching its lowest point this year as market sentiment weakened.
Despite the price surge, spot Ethereum ETFs have continued to experience outflows. For the third consecutive day, these ETFs posted outflows on May 8, totaling $16.1 million according to Farside data.
The Ethereum Foundation remains active in supporting the ecosystem’s growth. In Q1 2025, it awarded $32.64 million in grants to various projects focused on improving Ethereum’s community and education, consensus layer, cryptography, developer experience, and protocol growth.
The broader cryptocurrency market has also benefited from improved sentiment. Bitcoin has gained 3.59% over the same period and nearly 6% over the past seven days, reclaiming the $100,000 mark on May 8 for the first time in over three months.
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