Ether (ETH) is poised to achieve its best weekly performance since May 2021, surging over 37.5% in the week ending May 11, with a notable 10.3% increase in just the last 24 hours. This impressive rally is attributed to several key factors, including the recent Pectra upgrade, significant whale accumulation, and a major short squeeze in the futures market.
The positive market sentiment was bolstered by a new trade agreement between the US and the UK announced on May 8, alongside the initiation of US-China trade talks. These developments have contributed to a bullish atmosphere not only for Ethereum but across the broader cryptocurrency market. The Pectra upgrade, which took effect on May 7, introduced enhancements such as increased staking limits and account abstraction (EIP-7702), making Ethereum more adaptable and user-friendly. Since the upgrade, Ether has outperformed the total crypto market, which saw a mere 10.91% increase in capitalization during the same period.
Moreover, a significant short squeeze has fueled ETH’s upward momentum, with approximately $437.94 million in short liquidations recorded since May 8. As traders betting against Ethereum were forced to close their positions, the buying pressure further propelled ETH’s price. The open interest in Ethereum futures has also surged from $21.28 billion to $26.77 billion, indicating a growing interest among traders.
Adding to the bullish narrative, mega-whales—wallets holding over 10,000 ETH—have begun accumulating, with their net positions flipping positive since late April. This trend suggests that large investors are positioning themselves for potential future gains.
As ETH bounces off a long-term ascending support line, technical patterns hint at a possible rally toward $3,400, representing a potential 40% increase from current levels. With historical trends reinforcing this bullish outlook, Ethereum’s recent performance underscores its resilience and the growing confidence among investors.
