Ethereum, which has just completed the Pectra upgrade, has seen remarkable gains recently, breaking through 2700 dollars this morning. Bulls are optimistic about a return of the bull market, while bears question the upward momentum.
After last night's US Consumer Price Index (CPI) released below market expectations, indicating that inflation has not heated up, it strengthened market expectations for the Federal Reserve to cut interest rates this year. Bitcoin once again approached 105,000 dollars.
Ethereum is stronger, breaking through 2700 dollars early this morning, reaching a high of 2738 dollars. As of today (14th) at 9:30, it reports at 2702 dollars, rising nearly 10% in the last 24 hours, performing the best among the top ten tokens.
Where does the upward momentum come from?
From a fundamental perspective, the Pectra upgrade of Ethereum deployed on May 7 not only enhances network efficiency again but also introduces account abstraction features (EIP-7702) that allow users to manage wallets more flexibly. The optimized staking mechanism increases the validator ETH cap from 32 ETH to 2048 ETH, while introducing flexible withdrawal methods, making it easier for institutions and individuals to maintain network security.
In addition, Ethereum continues to attract the attention of various institutions, and it is expected that this year it will gain SEC approval for ETH staking, as well as BlackRock and other giants strengthening the tokenization of RWA, all of which are expected to enhance Ethereum's liquidity and long-term value.
Market analyst VirtualBacon recently predicted that if Bitcoin reaches 200,000 dollars, Ethereum's price could also reach 10,000 dollars.
ETH Technical Analysis
According to analysis from Fxstreet, ETH is currently in an upward trend from a technical perspective:
Breaking the downward trend line (DT), which has suppressed all upward trends since the high in December.
Above its rising red 20-day simple moving average, which is located above the (blue) 50-day simple moving average.
The only short-term obstacle is the 200-day SMA (red line in the chart below), which has just broken through and pulled back. If it can stabilize above this line, the short-term target may reach 3100 dollars.
However, due to many uncertainties in the current global economy, liquidity is not strong enough to sustain a major bull market. Many bearish analysts believe that the current stage is a "dead cat bounce" rather than a complete reversal. If there is a significant pullback, ETH may challenge the support at 2100 dollars.
