May 9, 2025

Ethereum ($ETH) continues its impressive rally, reaching $4,350 against the U.S. dollar ($ETH/USD) as of 2:00 PM IST on May 9, 2025, marking a 7.5% increase in the past 24 hours. Fueled by the recent ‘Pectra’ upgrade and a broader crypto market resurgence, Ethereum is riding high on renewed investor confidence and a surge in decentralized finance (DeFi) activity. Here’s a real-time breakdown of the $ETH/USD pair and the factors driving its upward trajectory.

$ETH/USD Price Action

The $ETH/USD pair has broken through the $4,200 resistance level, a significant psychological barrier, and is now consolidating around $4,350.


Key technicals include:

  • Support Levels: $4,200 (recent resistance-turned-support) and $4,050 (aligned with the 20-day EMA).

  • Resistance: $4,500, a level last tested in early 2022, with Fibonacci extensions pointing to $4,800 as the next target.

  • Momentum: The Relative Strength Index (RSI) is at 71, indicating strong bullish momentum but nearing overbought territory, which could signal a short-term pullback.

What’s Driving the Rally?

Several factors are propelling $ETH/USD to new heights:

  • ‘Pectra’ Upgrade Impact: Ethereum’s latest upgrade, rolled out earlier this month, has enhanced scalability and reduced transaction costs, leading to a 30% increase in DeFi total value locked (TVL) to $150 billion.

  • DeFi and NFT Growth: The upgrade has boosted activity on Ethereum-based protocols, with daily transaction volumes hitting a 16-month high. NFT marketplaces are also seeing renewed interest, further driving ETH demand.

  • Macro Tailwinds: A weakening U.S. dollar, down to its lowest since March 2022 following a U.S.-UK trade deal on May 8, has bolstered risk-on assets like Ethereum.

  • Institutional Interest: Ethereum ETF inflows have surged, with $1.2 billion entering the market in the past week, signaling growing institutional adoption.

Risks and Outlook

While the outlook for $ETH/USD remains bullish, there are risks to monitor:


  • Market Sentiment: The Fear & Greed Index at 73 suggests potential overheating, which could lead to profit-taking.

  • Profit Realization: Long-term holders have been selling at a rate of $500 million daily, which might trigger a correction if selling pressure mounts.

  • Regulatory Uncertainty: Ongoing global debates over crypto regulations could impact Ethereum’s growth, especially in regions like the EU, where stricter rules are being proposed.

Ethereum’s Bright Future

Ethereum’s climb to $4,350 underscores its pivotal role in the crypto ecosystem, particularly as DeFi and NFT activity soar. With technicals pointing to a potential test of $4,500 soon, $ETH/USD is firmly in bullish territory. However, traders should remain vigilant for short-term volatility as the market navigates euphoric sentiment. As Ethereum solidifies its position as the backbone of DeFi, the $ETH/USD pair is one to watch in this crypto comeback.

$ETH