- ETH up 8% to $2,702 as Pectra upgrade boosts scalability and institutional futures interest rises 12%.
- U.S. inflation dip to 2.3% fuels crypto demand; Bitcoin stability supports Ethereum’s $32B futures OI.
Ethereum (ETH) rose 8% in the past 24 hours, reaching $2,702 amid heightened activity in the altcoin market. The increase follows a 40% rise over the previous week, with several factors contributing to the upward trend.
Pectra Upgrade Enhances Network Capabilities
The Ethereum network activated the Pectra upgrade last week, introducing changes aimed at improving transaction speed and reducing costs. These adjustments position Ethereum to better compete with other blockchain platforms, particularly those prioritizing high throughput. Developers highlight that such upgrades address scalability, a priority for institutions exploring decentralized applications.
Lower Inflation Spurs Crypto Demand
U.S. inflation data released Tuesday showed a 2.3% annual decline, easing concerns about aggressive monetary tightening. As traditional markets react to slower economic growth, cryptocurrencies like Ethereum attract attention as alternative investments. Bitcoin’s recent stability above $97,000 has further bolstered confidence in crypto assets.
Ethereum futures open interest—a measure of active contracts—climbed 12% in 24 hours to $32 billion. This rise reflects growing institutional participation, with firms increasingly using derivatives to gain exposure. ETHNews analysts note that Ethereum’s utility in decentralized finance (DeFi) and tokenization projects underpins this demand.
A surge in ETH buying triggered $145 million in leveraged position liquidations over 24 hours, including $107 million from short contracts. Such liquidations occur when rapid price shifts force traders to exit positions, often accelerating upward or downward trends. In this case, bullish momentum compounded as sellers covered losses.
Ethereum (ETH) – Technical & Fundamental Analysis – May 2025
Ethereum is currently trading at $2,678.40, reflecting a strong +7.33% daily gain, building on a breakout momentum fueled by technical and institutional catalysts. Over the last week, ETH has gained +47.16%, and +62.93% over the past month, marking one of its most powerful rallies in over a year.
Despite these gains, ETH is still down -19.59% year-to-date and -16.08% over the past 6 months, which highlights its recent transition from corrective phase to bullish acceleration.
From a technical standpoint, ETH has cleared critical resistance at $2,500 and is now targeting the $2,900–$3,000 zone. Momentum is supported by a massive surge in volume—over $31.9 billion in the past 24 hours—and a shift in the ETH/BTC ratio that resembles the 2017 altseason pattern, suggesting Ethereum may begin to outperform Bitcoin. Key support is found near $2,480, which aligns with the previous breakout region.
Fundamentally, Ethereum’s recent rally is anchored in two key developments. First, the launch of the Pectra upgrade on May 7, which brought major improvements to staking mechanisms and user experience, has been well received.
Second, Abraxas Capital, a London-based institutional investor, disclosed the purchase of 211,030 ETH (approx. $500M) in just six days, reinforcing Ethereum’s narrative as a prime digital asset for institutional portfolios.
