Is Ethereum Back? ETH Posts Biggest Daily Gain Since 2021 as Bulls Take Control

Ethereum delivered a stunning performance in recent trading, posting its most biggest daily gain since 2021. The second-largest cryptocurrency by market capitalization surged from $1,810 to $2,230 in a single daily candle, igniting renewed optimism across the crypto market. Following this explosive move, ETH briefly touched $2,450 before correcting to the $2,300 range, a level it’s currently hovering around. This puts Ethereum at its highest price levels since early March. Ethereum’s rally is fueled by market dynamics and protocol developments A number of factors appear to be contributing to this dramatic upswing. Notably, the recently completed Pectra upgrade, a major milestone in Ethereum’s ongoing roadmap, has helped stoke bullish sentiment among investors and developers alike. The Pectra upgrade is Ethereum’s most significant update since the 2022 Merge. It raises the maximum stake per validator from 32 ETH to 2,048 ETH, making staking more efficient for large operators. It also introduces EIP-7702, a step toward account abstraction that allows wallets to temporarily act like smart contracts, enabling features like stablecoin fee payments and wallet recovery. The upgrade arrives amid rising competition and internal debates about Ethereum’s future direction. Commenting on the recent move, popular market analyst Alex Krüger highlighted that the buying pressure for Ethereum is coming from traders opening new long positions: This move on $BTC since upper 99ks largely driven by shorts getting liquidated or closing. $ETH is different, that’s mainly new longs. pic.twitter.com/Ilb1eFJCrE — Alex Krüger (@krugermacro) May 8, 2025 Krüger’s observation suggests that Ethereum’s surge is not just a short squeeze, but rather a broader accumulation by market participants betting on further gains. Meanwhile, chart analyst DaanCrypto offered a longer-term perspective, expressing interest in potential long positions around a lower re-test zone: $ETH Save to say, this went much quicker than I expected. I was definitely waiting for a move above $2K+ but for it to happen in a day is insane. Shows just how much short demand there was built up on this. Having said that, I do think we will eventually go for that ~$2550 level... pic.twitter.com/zGfWRI17nE — Daan Crypto Trades (@DaanCrypto) May 9, 2025 According to DaanCrypto, the speed of Ethereum’s breakout underscores the intensity of prior short demand, which likely accelerated the upside momentum when those positions unwound. Ethereum still lags behind Bitcoin in 2025 Despite the excitement surrounding this rally, Ethereum’s performance relative to Bitcoin paints a more sobering picture. ETH is still down approximately 40% against BTC on a year-to-date basis, highlighting that a full Ethereum comeback is far from confirmed. The underperformance suggests that while ETH is experiencing a short-term resurgence, broader confidence in Ethereum’s long-term dominance has yet to be fully restored. What’s next? CoinCodex algorithmic prediction sees volatility before a 2025 peak CoinCodex’s algorithmic Ethereum price prediction offers a mixed but hopeful outlook. According to the platform’s forecast, ETH is expected to reach $2,890 by late 2025, a notable increase from current levels. However, the model also anticipates significant volatility in the interim, projecting a potential dip below $1,500 before Ethereum stages a meaningful recovery. While short-term traders are enjoying the recent fireworks, long-term holders should remain cautious. The road ahead may be bumpy, but the technical and fundamental groundwork for a sustained recovery is gradually taking shape. Kraken: Best crypto exchange for security & reliability Buy, sell, and trade 400+ cryptocurrencies with industry-leading security Spot, Futures & Margin trading – leverage up to 5x for advanced traders Earn rewards with staking on top cryptocurrencies 24/7 customer support and high liquidity for fast trades Regulated in the US with strong compliance and security measures 13+ million users worldwide Get Started on Kraken Source: https://coincodex.com/article/67172/is-ethereum-back-eth-posts-biggest-daily-gain-since-2021-as-bulls-take-control/