Ethereum Surges Past $2,600: Institutional Buying Frenzy and Pectra Upgrade Fuel 50% Rally
After rising almost 9% in the past 24 hours and almost 50% since its April lows, Ethereum (ETH) has made an incredible return trading above
Quick overview
- Ethereum has surged nearly 9% in the last 24 hours, trading above $2,600 and achieving a market cap of almost $325 billion.
- Institutional investment, particularly from Abraxas Capital, has significantly contributed to Ethereum's price increase, with recent purchases totaling around $477.6 million.
- The launch of the Pectra upgrade on May 7 has enhanced Ethereum's network capabilities, making it more competitive against other blockchain systems.
- Analysts predict that Ethereum could climb towards $3,000 if current support levels hold, despite caution due to overbought conditions.
After rising almost 9% in the past 24 hours and almost 50% since its April lows, Ethereum ETH/USD has made an incredible return trading above $2,600. With its market capitalization now almost $325 billion, this gain has positioned the second-largest cryptocurrency among the most valuable assets available worldwide.
Institutional Investment Fuels ETH’s Momentum
Aggressive institutional accumulation is a major force behind Ethereum’s upward path. In just six days, London-based asset management company Abraxas Capital bought around 211,030 ETH valued almost $477.6 million. Their most recent purchase on May 13 came from Binance for 33,482 ETH for $84.7 million.
This institutional buy suggests that Abraxas Capital’s activities greatly influence market sentiment since Ethereum’s 48.73% price increase over the previous week corresponds with it. Reports show the corporation borrowed $240 million in USDT from Aave before shifting these funds to Binance, suggesting perhaps continuous accumulation techniques.
Ethereum’s Market Cap Surpasses Corporate Giants
Ethereum now ranks as the 33rd most valuable asset worldwide, with its market cap surpassing that of several renowned corporate giants, including Alibaba ($320 billion) and Coca-Cola ($297 billion). This milestone represents a significant moment where a decentralized network has overtaken traditional corporate entities in market value.
Ethereum Pectra Upgrade Enhances Network Capabilities
The mainnet launch of the Pectra upgrade on May 7 essentially drives Ethereum’s rally. Many Ethereum Improvement Proposals aiming to better wallet usability, staking efficiency, and layer 2 scalability came from this development.
By improving network performance, Pectra has raised Ethereum’s competitiveness against other layer-one blockchain systems—especially Solana. For institutional investors looking at Web3 opportunities, these developments address key considerations.
ETH/USD Technical Analysis and Price Outlook
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Around its 200-day EMA at roughly $2,424, Ethereum has developed great support; it has successfully tested this before surging 7.38%. At the time of writing, ETH/USD is trading between $2,400 and $2,700; analysts predict a horizontal trend before the next upward leg.
ETH could extend its climb toward $3,000 if present support levels hold; the next pivotal resistance falls between $2,850 and $2,900. Officially recovering its Macro Range, Ethereum has obtained a significant Weekly Close at $2,514, according to analyst Rekt Capital, which historically points to ongoing higher trend.
Still, given the RSI of 78, indicating overbought conditions, caution is advised. Should support at $2,468 fall short, ETH may see a 10-15% retreat toward $2,200 – $2,101.
Lower U.S. inflation (down 2.3% year-over-year in April), short squeeze dynamics ($107 million in short liquidations in 24 hours), and rising futures open interest (up 12% to $32 billion) add more positive elements.
The market shows great optimistic attitude as Bitcoin BTC/USD approaches $105,000 and the Ethereum fear and greed index exceeds 75%. If favorable conditions hold, Ethereum seems positioned to test higher price levels in the next weeks and maybe reach its all-time high.
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