Ether (ETH) skyrockets by 20% in a day, its best performance since 2021, thanks to the Pectra upgrade. This major update boosts investor confidence and could propel Ethereum to new heights. Explore the insights behind this remarkable rebound!
Ether (ETH), the native token of Ethereum, has seen a remarkable surge of nearly 20% in a single day. This record performance since 2021 is driven by the successful implementation of the Pectra update, a major change for the blockchain network. Let’s delve into the implications and consequences of this significant development for the Ethereum ecosystem.
Indeed, Ethereum is on the rise, benefiting from the overall crypto market rebound. ETH has surged by nearly 20% in a single day, surpassing the $2,100 mark. This historic performance since 2021 can be attributed to the successful implementation of the Pectra update, a true turning point for the network.
This hard fork, one of the most ambitious since the merger (The Merge) in 2022, aims to significantly enhance Ethereum’s capabilities. Among the key updates are raising the staking limit from 32 to 2,048 ETH per validator, introducing “account abstraction” for improved wallet usability, and various technical optimizations.
“The Pectra update has been a real catalyst in restoring investor confidence in Ethereum,” explains Ming Jung, an analyst at Presto Research. While ETH has been significantly lagging behind Bitcoin since the beginning of the year, this resurgence allows the second crypto asset to substantially narrow its valuation gap.
While this renewed enthusiasm is welcomed, analysts urge caution regarding the sustainability of this bullish momentum. Despite this surge, activity on the Ethereum blockchain still significantly lags behind its 2021 historical highs.
“ETH’s price has indeed caught up somewhat, but on-chain metrics indicate that the recovery is not yet complete,” notes March Zheng, managing partner at Bizantine Capital. This observation tempers hopes for a quick return to the peaks of 2024.
Nevertheless, experts believe that this favorable trend could benefit the entire altcoin market. As Ethereum often serves as a leading indicator, its rebound frequently presages a broader bullish trend.
In this positive context, attention is now turning to Ethereum’s ability to translate these technical advancements into broader adoption. The blockchain will need to convince institutional players through improved usability and enhanced security.
Some even anticipate a major new bullish cycle for the ecosystem. Standard Chartered has recently raised its price target for Bitcoin, now positioning it at $120,000 by the end of June. “This forecast may even prove to be too conservative,” emphasize the analysts.
As Bitcoin continues to drive the market higher, Ethereum, with its strong fundamentals, could seize the opportunity to narrow the gap accumulated since the beginning of the year against the leading cryptocurrency. The future looks bright for the second-largest blockchain.
From a technical standpoint, the RSI of ETH is in overbought territory on a daily basis, around 78. Nonetheless, ETH still has room to reach the next resistance levels at $2,400 and $2,700.
In the short term, ETH may face selling pressure up to $2,374.
A retest of the $1,874 support could occur in the short term if Bitcoin also retraces, providing an entry opportunity into the market.
In the medium to long term, according to FBB, ETH has a projection up to $3,500 at a minimum if the rally continues over the coming weeks.
To invest in Ethereum now, here is a straightforward guide to buy ETH on Bitget:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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