Ethereum has experienced a significant price rally, climbing nearly 50% to over $2,700 following the recent Pectra upgrade.
Currently, it sits about 6% below the price level it reached after Eric Trump publicly endorsed the crypto on February 3, when he tweeted that it was a great time to invest in Ethereum. This tweet came during a market downturn triggered by President Trump’s tariff proposals, which caused Ether to drop more than 15% to around $2,300.
The bearish trend continued as fears of escalating trade tensions and inflation grew, particularly after Trump announced sweeping tariffs in early April. This led to Ether hitting a low of approximately $1,400 on April 7, marking its lowest point since November 2023.
However, the recent price surge is attributed to the activation of the Pectra upgrade on May 7, along with improved sentiment regarding US-China trade relations and increased institutional investment.
The Pectra upgrade introduces several Ethereum Improvement Proposals (EIPs) aimed at enhancing staking efficiency, wallet usability, and layer 2 scalability. This upgrade is crucial for Ethereum’s future growth, making the platform more user-friendly and enabling systematic staking. Since the upgrade’s launch, Ethereum’s price has surged over 40% within just five days.
On the institutional investment front, UK-based Abraxas Capital has made headlines by acquiring 211,030 ETH, valued at around $477 million, in the past week. This influx of institutional interest has contributed to Ethereum’s rising market capitalization, which now stands at around $325 billion.
This places Ethereum ahead of major companies like Coca-Cola, valued at around $297 billion, and Alibaba, which has a market cap of about $320 billion.
