Ethereum Surges on Pectra Upgrade and Eased Trade Tensions

Ethereum soared nearly 40% last week, jumping from $1,800 to $2,500, as improved global risk sentiment and the successful rollout of its Pectra upgrade fueled investor optimism. The rally came amid easing U.S.-China trade tensions and a limited agreement between the U.S. and the U.K., which lifted global equities and spilled over into crypto markets.

Ethereum outperformed Bitcoin and other major cryptocurrencies during the surge, driven by growing confidence in its network upgrade. The Pectra hard fork, activated on May 7, introduced improvements to staking efficiency and wallet usability—boosting long-term scalability prospects. Analysts credit the upgrade’s smooth execution for restoring market faith in Ethereum’s technical resilience.

Still, market enthusiasm appears tempered. After the weekend, ETH, along with Bitcoin and Solana, slipped slightly as investors locked in gains. Some experts warn the rebound may be fragile, pointing to the lack of institutional confirmation. Ethereum ETFs recorded $55 million in outflows, in contrast to Bitcoin ETFs, which attracted $600 million in inflows last week.

According to Derive.xyz, Ethereum now has a 20% chance of surpassing $4,000 by year-end, up from 9% the week prior. However, analysts caution that without stronger fundamentals, including regulatory clarity and deeper institutional participation, Ethereum’s next leg up may take time.

Despite the recent volatility, Ethereum's surge signals a renewed appetite for digital assets, especially those with evolving utility. Whether this marks the start of a longer-term breakout or a temporary relief rally remains to be seen—but the spotlight is firmly back on ETH as a top altcoin to watch.