Ethereum (ETH) leads the market with a 20% surge following the Pectra upgrade, while Bitcoin (BTC) also climbs above $100K, marking a positive shift in the crypto market.
Ether’s price soared to over $2,100 during early Asia trading hours, marking the largest gain since 2021. The token’s rise follows the recently implemented Pectra upgrade, which has brought renewed optimism among traders. Ethereum’s performance outpaced the broader CoinDesk 20 Index as it surged nearly 20%, while Bitcoin also gained momentum, surpassing the $100,000 mark for the first time in three months.
The Pectra upgrade is Ethereum’s most significant overhaul since the 2022 Merge. As previously reported by CoinDesk, the upgrade includes a major protocol hard fork, which consolidates validator operations by increasing the staking limit from 32 to 2,048 ETH (via EIP-7251), enhances wallet functionality with account abstraction mechanisms for temporary smart contract execution (via EIP-7702), and implements nine additional Ethereum Improvement Proposals (EIPs).
“ETH is finally catching up after lagging behind BTC for most of the year. While BTC nears its all-time high, ETH is still down nearly 50% from its peak in 2024,” said Ming Jung of Presto Research in a note to CoinDesk. He attributed the recent surge in Ethereum to the Pectra upgrade, which has reignited investor confidence. Jung also highlighted that with the ETH/BTC ratio down nearly 40% year-to-date, buyers are taking advantage of these lower levels.
Despite Ethereum’s rally, some analysts are cautious about the long-term recovery of ETH. CryptoQuant noted that Ethereum’s network activity has remained flat since 2021, signaling that a full recovery to previous highs may not be imminent despite the recent price action.
On the broader market front, Flowdesk pointed out that the overall crypto market is regaining momentum, with the $100,000 threshold for Bitcoin being a catalyst for increased risk appetite. “Investors are shifting from caution to seeking higher-yield altcoins and structured products,” Flowdesk wrote in their market update, adding that while the market remains below Q4 2024 levels, the demand for higher-risk plays is beginning to grow.
March Zheng, General Partner at Bizantine Capital, reminded traders that Ethereum has traditionally been an indicator for on-chain altcoin activity, with its price surges often preceding broader altcoin rallies.
Bitcoin continues to trade above $102,500 as ETF inflows remain strong. Standard Chartered recently revised its second-quarter price target for Bitcoin to $120,000, noting that it might be too conservative. Other analysts are also suggesting that current upside targets for Bitcoin and Ethereum might be underestimated.
Meanwhile, the CoinDesk 20 Index, which tracks the performance of the largest digital assets, has increased by over 10%, reflecting a positive shift in the market.
