Ethereum has surged past the $2,000 mark just one day after the Pectra upgrade went live, posting its strongest single-day gain in months. The move follows a wave of network activity, validator reconfiguration, and a sharp uptick in user demand – all contributing to a tightening ETH supply.
The rally has lifted ETH more than 10% since the upgrade activated at epoch 364032. As of Thursday morning, the price hovered around $2,030, breaking through key resistance and reigniting bullish sentiment across the broader crypto market.
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Network Usage and Burn Rates Spike
On-chain data suggests the surge is more than just momentum. Active addresses climbed to a 30-day high, and daily ETH burn hit its highest level this month. Combined with the supply sink caused by Pectra’s rollout – including faster staking and more efficient validator operations – Ethereum’s circulating supply has dropped to its lowest point in over two weeks.
Wallets like Ambire and Trust Wallet have already rolled out support for Pectra’s smart account features, enabling gasless transactions, session keys, and bundled actions. These features are starting to see usage in real time, helping drive up fees and, in turn, token burns.
Undervalued No More?
Analysts are watching Ethereum’s technical signals closely. The ETH/BTC ratio, which recently hit its lowest level since 2019, is beginning to rise again. RSI and MACD indicators now reflect strong upward momentum, and ETH is trading above both its 9- and 20-day EMAs – a key signal for trend reversals. If the breakout holds, we might see further growth, beyond $2100.
Ethereum Finally Wakes Up
After months of sluggish price action and underperformance against Bitcoin, Ethereum is finally showing signs of recovery. The recent Pectra upgrade has kickstarted network activity and helped push ETH past the $2,000 mark, breaking out of a long consolidation phase.
Broader sentiment is shifting as well. Signs of easing tensions in U.S.-China trade talks have improved risk appetite, while Arizona’s approval of the Bitcoin Reserve law has added to optimism around crypto regulation. With capital flowing back into altcoins and Ethereum’s fundamentals strengthening post-upgrade, the stage may be set for a more sustained rebound.
We cover all the changes that Pectra Upgrade has brought in this article.
