Will Ethereum (ETH) be able to maintain its rise momentum?

Ethereum, which has gained about 40 percent since last week, (ETH) Ether, the cryptocurrency of the blockchain, have left their mark on the market. ETH, which has lagged behind Bitcoin (BTC) and many major altcoins with its price performance for about a year, has upset its investors a lot. The Ethereum blockchain, which has been struggling with fundamental problems such as scalability problems, slowness in transactions and high transaction fees, took a breather with the Pectra update last week. After the update went live, more than 38 thousand ETH was burned in just one day on the blockchain, which witnessed an increase in on-chain activity.

Moreover, the crypto market has provided a quite favorable environment for a rise. The announcement by U.S. President Donald Trump that they are close to a trade agreement with China and the bilateral trade agreement signed with the UK eased the stock markets. The slight lifting of the fog in the uncertain environment of the global economy caused by customs duties has enabled money to flow into the crypto market.

The question now is: Will the recovery in Ether, which has long been trading at an underpriced price compared to rival blockchains (özellikle Solana ya) continue?

"There is no doubt that it reflects optimism"

James Toledano, the Chief Operating Officer of the Web3 wallet company Unity Wallet, stated, "There is no doubt that the recent recovery in Bitcoin, Ethereum, and Solana reflects renewed optimism in the market," and added, "However, I believe this could be a hollow recovery because it is based on the emotions and political moves of a single individual. Everyone who is serious about crypto prefers the fundamentals to be the driving force."

Last week, Bitcoin spot ETFs recorded a net inflow of $600 million, while Ethereum ETFs saw an outflow of $55 million. Matteo Greco, a research analyst at Fineqia International, stated, "The scale and strength of the price recovery, combined with the modest outflows from Ethereum ETFs, indicate that it is primarily the cryptocurrency investors, rather than institutional inflows, that are driving the volatility."

Analysts argue that the Pectra update released on May 7 plays a significant role in Ethereum's rise. The implemented update aims to particularly enhance the experience of validators and increase efficiency in block production. It brings innovations such as fundamental infrastructure changes for future scalability steps, easier key management for validators, and technical improvements in block production processes.

"The Pectra update has opened doors for institutions"

Sean Dawson, the Head of Research at Derive.xyz, stated, "The ETH Pectra upgrade was implemented smoothly, increasing confidence in Ethereum's scalability capabilities and paving the way for greater institutional adoption."

Derive's models determine the probability of Ethereum exceeding $4,000 by the end of the year at 20%. Volatility measurements also indicate that the asset may remain more reactive than Bitcoin in the coming months.

Toledano also noted: "Without more clarity on sustainable institutional momentum and regulations, we might see consolidation before any new all-time high is tested."

The second largest cryptocurrency by market capitalization, ETH, has lost 4% in value in the last 24 hours, trading at 2,460 dollars at the time of writing.

This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.