Trade of the Week: Ethereum (ETH) Rallies on Whale Accumulation and Pectra Upgrade
May 10, 2025 — In a week filled with bullish momentum and positive sentiment across the crypto markets, Ethereum (ETH) has stood out as the Trade of the Week, thanks to major on-chain activity, a critical network upgrade, and a renewed surge in investor interest.
Ethereum, the second-largest cryptocurrency by market capitalization, has risen by more than 30% this week, outperforming even Bitcoin in relative gains. It’s currently trading at $2,413, with daily highs reaching over $2,450.
📌 Why Ethereum? Key Catalysts Behind This Week’s Rally
1. Whale Accumulation Surge
One of the clearest bullish signals for Ethereum this week is the sudden spike in whale accumulation. On-chain data reveals that net inflows to wallets holding over 10,000 ETH have jumped by 374%, the highest single-week increase this year. Such movements are typically early indicators of institutional positioning ahead of expected price increases.
2. The Pectra Network Upgrade
Ethereum’s long-awaited Pectra Upgrade was successfully rolled out this week. Designed to boost transaction efficiency, lower gas fees, and improve smart contract execution, the upgrade strengthens Ethereum’s position as the leading Layer 1 network.
The update was met with enthusiasm from the development community and DeFi projects, sparking new use-case deployments and token integrations.
3. Altcoin Season Is Brewing
With Bitcoin's dominance slightly receding and the Altcoin Season Index rising from 23 to 36, market attention is clearly pivoting towards alternative cryptocurrencies. Ethereum, being the most prominent altcoin, is capturing a significant share of that shift in capital.
📊 Technical View: Bullish Momentum Confirmed
Chaikin Money Flow (CMF): Up to 0.13, signaling strong accumulation pressure.
Resistance Zone: $2,500 – $2,550. A confirmed breakout above this level could open the path to $2,800.
Support Levels: $2,100 and $1,960 offer key reentry points in case of a retracement.
Ethereum’s trading volume on major exchanges like Binance and Coinbase has surged by 48%, and open interest in ETH futures is up 25% week-over-week, reflecting strong trader engagement.
💼 Investor Takeaway
If you're looking for momentum plays in May, Ethereum offers one of the most balanced risk/reward profiles:
Fundamentals: Strengthened by the Pectra upgrade and DeFi ecosystem growth.
Technical Analysis: Solid breakout structure supported by high-volume inflows.
Market Positioning: Favorably positioned for continued gains as the altcoin narrative builds.
Short-term traders might look for a continuation play if ETH breaks $2,500 with volume, while long-term investors could view any dip as a buy-the-dip opportunity.
📝 Final Word
Ethereum is not just riding the wave — it’s leading it. As altcoins take center stage in early May, ETH’s combination of technical strength, development milestones, and whale confidence makes it the Trade of the Week and a standout contender for portfolio focus this month.