Why is Ethereum's (ETH) price pumping ?
Ethereum ($ETH ) is seeing a price increase due to multiple factors:
1. Pro-Crypto Sentiment: Donald Trump’s 2024 U.S. election win has boosted optimism, given his pro-crypto stance and potential for clearer regulations, including SEC changes. This could drive capital into ETH ETFs, increasing demand.
2. Pectra Upgrade: Launched on May 7, 2025, this major upgrade improves user experience with smart wallet features, enhances Layer 2 scaling, and boosts validator efficiency, strengthening investor confidence.
3. Ecosystem Expansion: Ethereum’s network shows strong growth with 15.4 million active addresses (up 62.7% in a week) and dominant Layer 2 scaling, signaling robust adoption and countering bearish views.
4. Market Trends: Capital inflows into ETH ETFs and ($BTC )Bitcoin’s rally are fueling ETH’s rise, as investors shift profits to altcoins like Ethereum.
5. Speculative Buzz : Social media, like Reddit, reflects community optimism, with some predicting ETH could double due to its undervaluation and DeFi growth, though these claims are speculative.
