If both coins manage to overcome the barriers of the $100,000 (for Bitcoin) and $2,000 (for Ethereum) regions, this could cause a 'short squeeze', forcing short traders to switch sides.
Bitcoin and Ethereum taking off. Source: Midjourney.
Ethereum showed a good recovery this Thursday (8), rising about 10% on the day. Market enthusiasm is linked to the Pectra update released this Wednesday (7).
Bitcoin is also performing well. Data from TradingView shows that bulls are trying to break the resistance of $100,000.
The change in market sentiment is related to the Fed meeting held this Wednesday (7). However, it is worth noting that Bitcoin developers are in a heavy discussion about the future of the project.
Ethereum surges after Pectra update is successfully implemented
Even before the Pectra update was launched, one of Ethereum's developers stated that this would be "like changing the engine of a plane in mid-flight." In any case, the update was successful.
"Pectra is active on the Ethereum mainnet!"
User experience features with smart account wallets are now active;
Blob data storage for scaling in L2 is duplicated;
User experience improvements for validators are now available.
Ethereum confirms Pectra update. Source: X.
Following, the text indicates that developers will continue to monitor possible issues in the next 24 hours.
In conclusion, Ethereum states that the update has been completed and they are already eyeing the next one, called 'Fusaka' and scheduled for the end of 2025.
The progress excited the market. At the time of this writing, ETH is quoted above $2,000, its highest price since the end of March. This region is crucial for bulls, who need to break the resistance found in this range.
Ethereum operates above $2,000 after Pectra update. Source: TradingView.
Bulls are also testing the resistance of Bitcoin's $100,000
In parallel, Bitcoin is being traded at $100,400 at the time of this writing, with bulls also testing the resistance of the $100,000 region.
According to data from Coinglass, over R$ 2.2 billion were liquidated from the futures market in the last 24 hours. Most are from short positions.
Bitcoin and Ethereum surge leading short liquidations in the futures market. Source: Coinglass.
If both coins manage to overcome the barriers of the $100,000 (for Bitcoin) and $2,000 (for Ethereum) regions, this could cause a 'short squeeze', forcing short traders to switch sides.
In other words, the market may be about to start a new bullish rally.
Finally, names like Changpeng Zhao and Arthur Hayes project that Bitcoin will reach a value of $1 million during this cycle.
The main market focus is on Bitcoin adoption by countries and large companies, as well as the Fed's next steps. However, it is worth highlighting that the US central bank is not expected to change interest rates in the next June meeting.
