Ethereum Breaks Above $2,200 Following Major Network Upgrade
Ethereum (ETH) soared over 20% to trade above $2,200 on Thursday evening ET, marking its largest single-day gain since May 2021. The price rally came shortly after the highly anticipated Pectra upgrade went live on Tuesday, reigniting investor confidence and sparking strong buying momentum.
Pectra Upgrade Restores Confidence in Ethereum
The Pectra upgrade is Ethereum’s most important network enhancement since the 2022 Merge. It introduces improvements to staking efficiency, validator operations, and Layer 2 scalability—critical features aimed at boosting Ethereum’s performance and long-term adoption. Analysts say these technical upgrades have played a key role in attracting renewed attention from both retail and institutional investors.
“ETH is finally catching up after lagging behind Bitcoin most of the year,” said Min Jung, research analyst at Presto Research. “With ETH/BTC down nearly 40% year-to-date, it’s no surprise that buyers are stepping in at these levels following the upgrade.”
Ethereum Outperforms as Risk Appetite Returns
Market experts attribute the rally not just to the Pectra upgrade, but also to a broader crypto market upswing driven by improving macroeconomic sentiment. Positive developments such as renewed U.S.-China trade talks have revived risk-on sentiment, prompting investors to reallocate capital toward altcoins and Ethereum.
“Investors are reevaluating the role of crypto as a hedge against global uncertainty,” said Nick Ruck, director of LVRG Research. “With altcoins showing strength again, it’s clear that the market may be entering a new bullish phase.”
Bitcoin Also Gains, But Ethereum Leads
While Ethereum stole the spotlight with its double-digit gains, Bitcoin (BTC) also continued its upward trend, rising 4% to $102,526. Analysts believe this week’s overall crypto rally was supported by upcoming trade negotiations in Switzerland between U.S. Treasury Secretary Scott Bessent and Chinese officials.
