Is Ethereum finally back in the spotlight? If you've been watching the charts this week, you probably already know the answer — and it’s a big, resounding yes.
In just two days, Ethereum (ETH) has pulled off a jaw-dropping rally, leaping nearly 29% from around $1,939 to a sizzling $2,400. That’s right — it crossed the $2,000 mark and didn’t even stop to catch its breath. By Friday morning, ETH was trading above $2,339, up more than 20% in a single day — its biggest daily gain since May 2021, according to Investing.com.
So, what’s driving all this action? Let’s break it down.
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It All Started with Pectra
Ever heard of the Pectra upgrade? If you’re an Ethereum follower, you definitely should. Activated on Tuesday, this is being called the most ambitious upgrade since the Merge — the one that transitioned Ethereum to proof-of-stake back in 2022.
But this isn’t just another technical tweak. Pectra is a full-blown overhaul designed to improve staking efficiency, validator flexibility, and Layer 2 scalability. In simpler terms, it makes Ethereum smoother, smarter, and faster — a crucial step for anyone who wants to see ETH take center stage again.
And the market took notice. Big time.
Confidence Is Creeping Back In
Min Jung, a research analyst at Presto Research, summed it up perfectly:
“ETH is finally catching up after lagging behind $BTC for most of the year... With ETH/BTC down nearly 40% year-to-date, it’s not surprising to see buyers stepping in.”
That risk-on sentiment — where investors start getting bold again — has returned in force. It’s not just about Ethereum. Traders are starting to warm up to altcoins in general, which had been stuck in the crypto doghouse for months.
Nick Ruck, director at LVRG Research, said it best:
“In addition to positive macroeconomic news, traders believe the crypto industry may have finally found its second wind.”
Wait... What’s Going on in the Macro World?
Good question — because ETH’s rally didn’t happen in a vacuum.
This week also saw some huge developments globally. Former U.S. President Donald Trump signed a surprise trade deal with UK Prime Minister Keir Starmer on Thursday, aimed at cooling down months of tense back-and-forth between the world’s largest economies. UK Treasury minister Darren Jones called it a “huge relief,” and the markets seem to agree.
Meanwhile, U.S. Treasury Secretary Scott Bessent is headed to Switzerland for renewed talks with Chinese officials — another signal that things might be easing on the trade war front.
And what happens when global uncertainty calms down? Investors start moving out of “safe” assets and into riskier ones — like crypto.
Bitcoin’s Rally Helped, But This Was ETH’s Moment
Bitcoin did its part, rising 4% this week to cross $102,000, but Ethereum was clearly the star of the show. The timing couldn’t have been better. After falling more than 33% over the past three months — weighed down by geopolitical stress — ETH finally got the upgrade (and the news cycle) it needed.
Even Ethereum-based tokens are feeling the boost. Meme coin PEPE surged over 43% in just 24 hours. AI project Virtuals (VIRTUAL) popped 24.3%, and Uniswap (UNI) climbed 21.5% — all clear signs that the Ethereum ecosystem is heating up fast.
Well, not everything is roses and rainbows. Despite Ethereum’s stellar price action, U.S. spot ETH ETFs have actually seen three straight days of outflows, according to CoinGlass. So, while the market is heating up, some big players are still pulling back — at least for now.
But here’s the real takeaway: Ethereum just reminded everyone that it’s still a force to be reckoned with. And with the Pectra upgrade setting the foundation for better scalability and usability, it’s not crazy to wonder — is this the start of ETH’s comeback season?
One thing's for sure — the next few weeks are going to be interesting.
Are you watching?
