Ethereum has exploded past $2,500, surging nearly 30% from local lows around $1,800, as the highly anticipated Pectra upgrade successfully deployed on May 7. The move triggered ETH’s largest single-day gain since May 2021, igniting a wave of bullish momentum across the crypto market.
Not just the Pectra upgrade, but a recent filing from BlackRock has pushed ETH to new monthly highs. The asset manager giant filed an S-1 form to modify its Ethereum Trust to allow in-kind redemptions.
NEW: Amended S-1 just dropped for BlackRock's Ethereum ETF — $ETHA. Looks like the main change is added language around allowing for in-kind creation/redemption when approved by the SEC.
(@EricBalchunas & I expect SEC approval for in-kind at some point this year) pic.twitter.com/HWkTfrDNsJ
— James Seyffart (@JSeyff) May 9, 2025
This would streamline operations for BlackRock and allow investors to enjoy a flexible trading experience. The firm is also looking to add Staking, a crucial component of the Ethereum ecosystem.
Chart Signals Turn Bullish
Ethereum’s chart tells the story. After weeks of consolidation, ETH broke out above its 21-day EMA and point of control at $1,850. Momentum indicators are flashing green: RSI is approaching overbought territory, MACD is accelerating, and weekly price action has crossed the 100-week SMA.
ETH has also cleared the critical $2,200 and $2,300 zones, now eyeing resistance between $2,500 and $2,850. Spot market inflows are driving this breakout. Data from CryptoQuant shows a 180K ETH drop in exchange reserves over the past 48 hours.
Despite ETF outflows in recent weeks, Ethereum’s on-chain data remains strong. Active addresses spiked from 458K to over 560K in 24 hours. ETH’s weighted sentiment index hit 5.2, its highest level since May 2024, signaling a shift in market mood. With transaction volumes surging and validator participation expanding, Ethereum is firing on all cylinders.
Can ETH Reach $3,000?
With the Pectra upgrade now live and ETH firmly above key moving averages, a run toward $3,000 appears increasingly likely. Analysts point to fair value gaps (FVGs) on the hourly chart between $2,200 and $2,300 that could act as support in case of a short-term pullback.
If price holds above these levels and sentiment remains elevated, ETH could revisit the $3,050–$3,100 range—the next psychological and technical barrier.
Macro sentiment also plays a role. Bitcoin recently broke above $100K, reviving altcoin momentum. ETH has underperformed relative to BTC and SOL in recent months, making this rally a potential beginning of capital rotation back into Ethereum.
Ethereum’s breakout past $2,300 is more than just a technical event. It marks a return to narrative dominance, powered by the Pectra upgrade, deflationary tokenomics, and deep institutional alignment.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
