Ethereum (ETH) was up 18% Thursday evening ET, going past the $2,200 mark after the much anticipated Pectra upgrade. This sharp surge followed new risk-on sentiment in the market as investors piled into the purchase of Ether. The 18% jump is the biggest single-day gain for ETH since May 2021.
“The recent Pectra upgrade has regained confidence in Ethereum,” said Min Jung, a research analyst at Presto Research. “ETH/BTC down by almost 40% this year, it’s not a wonder that buyers are coming in at these levels.”
The upgrade that became live on Tuesday is Ethereum’s biggest update since the 2022 Merge. It has code changes that improve staking efficiency, validator operations, and scalability for Layer 2 solutions, thus further increasing the appeal of Ether.
This surge is also underpinned by a more general market optimism. Positive macroeconomic news, such as revived U.S.-China trade talks, has boosted investor sentiment, and now many are seeing crypto as a hedge against market uncertainty.
“Investors are altering their perception on crypto as altcoins are gaining buying momentum,” said Ruck, a market analyst. In the meantime, Bitcoin (BTC) continued its rally, gaining 4% to $102,526, buoyed by expectations around U.S.-China trade negotiations.
The price surge of Ether and the strong performance of Bitcoin reflect a resurgence of optimism in the crypto space.
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