Ethereum Price Soars Post-Pectra
Ethereum experienced a significant price surge following the successful implementation of the Pectra upgrade. The price rallied almost 50%, exceeding $2,700. This rally brought the price within 6% of its peak following a public endorsement from Eric Trump, according to TradingView data.
Key Takeaways
- Ethereum's price increased by nearly 50% to over $2,700 after the Pectra upgrade.
- Abraxas Capital invested approximately $477 million in ETH post-upgrade, acquiring 211,030 ETH.
This substantial price increase follows Eric Trump's bullish tweet on February 3rd, where he stated, “In my opinion, it’s a great time to add $ETH.” While he later removed the concluding phrase, "You can thank me later," the initial tweet contributed to the market's positive sentiment.
The price surge contrasts sharply with the market downturn in early February and April, triggered by President Trump's tariff proposals. These proposals led to a market-wide selloff, with Ether briefly falling below $1,400 in April – its lowest point since November 2023.
The current rally is attributed to several factors: the successful Pectra upgrade on May 7th, renewed optimism due to improved US-China trade relations, and significant institutional investment. The Pectra upgrade introduced several Ethereum Improvement Proposals (EIPs) enhancing staking efficiency, wallet usability, and layer-2 scalability. This is a crucial step for Ethereum's continued growth.
Institutional Investment
Abraxas Capital, a UK-based investment firm, significantly boosted its Ethereum holdings. Arkham Intelligence data reveals an acquisition of 211,030 ETH, valued at approximately $477 million, within the past six days. This substantial institutional interest reflects growing confidence in Ethereum's future.
Market Cap Milestone
Driven by the price increase, Ethereum's market capitalization briefly surpassed that of both Alibaba and Coca-Cola, reaching approximately $325 billion and briefly claiming the position of the 33rd most valuable asset globally. This achievement underscores Ethereum's growing influence within the global financial landscape. While Alibaba momentarily regained the lead after a stock surge, Ethereum's position highlights its strength.
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