Ethereum continues to surge, recording a jump of 51% in the week, pulling Bitcoin, Solana, and Dogecoin up in price. Is this a golden opportunity for crypto investors? Let's analyze in detail.
Ethereum Breakthrough: Up 51% After Pectra Upgrade
Ethereum, the second-largest cryptocurrency by market capitalization, rose over 8% on Tuesday evening, peaking at $2,700 in the late afternoon Eastern Time before slightly dropping below this level. In the past week, Ethereum's price surged 51% (according to CoinGecko), thanks to the successful Pectra network upgrade last weekend, improving speed and efficiency. The recovery from the $1,700 level began when the Trump administration temporarily eased the global trade war, combined with the US inflation report on May 13 showing CPI only increased by 0.2% in April, lower than expected, with annual inflation reaching 2.3% – close to the Fed's 2% target.
Carlos Guzman (GSR) commented: 'The upward momentum of $ETH continues, finally standing out after the previous cycle. Investors are returning as sentiment shifts.' He believes the market reacts positively to low CPI, paving the way for the Fed to cut interest rates, although tariff impacts have not been fully reflected.
Bitcoin, Solana, Dogecoin: The Price Surge Wave
Other altcoins are also surging: Solana ($SOL ) jumped over 5% in 24 hours, Dogecoin ($DOGE ) and Shiba Inu (SHIB) each rose nearly 4%. Bitcoin, the largest digital asset, is currently trading above $104,200, up 1.4% for the week. Two major stock indices – Nasdaq and S&P 500 – rose 1.6% and 0.7% respectively, indicating positive sentiment spreading to risk assets.
Greg Magadini (Amberdata) remarked: 'ETH has significant potential, especially as stocks continue to recover rapidly.' He pointed out that the $2,800 threshold is a major resistance level from the Deribit options market, but positions are not overly extended, so ETH could continue to rise if it surpasses this level.
Impact on the Crypto Market
This event brings many signals:
Increased confidence: Crypto fund inflows reached $3.4 billion last week, Bitcoin ETFs attracted $1.8 billion, and a forecast of accumulating $330 billion into Bitcoin by 2029.
Boosting altcoins: Ethereum, Solana, and Dogecoin benefit from optimistic sentiment and network upgrades.
Stable growth: The stock market and crypto both increased, reinforcing the trend of risk investment.
Future Prospects
If Ethereum surpasses the $2,800 threshold in the next 1-2 weeks, the price could aim for $3,000, especially if the Fed cuts interest rates. However, tariff impacts and macroeconomic volatility remain risks to monitor. Solana and Dogecoin could also maintain their upward momentum if meme coins remain hot.
Conclusion: Will Ethereum Continue to 'Soar' or Land?
Ethereum increased by 51% in the week, reaching $2,700 thanks to the Pectra upgrade and low US CPI, leading Bitcoin ($104,200), Solana, and Dogecoin to rise sharply. With the potential to exceed $2,800, the crypto market is heating up again, but risks from policy remain. Investors should closely monitor to seize opportunities or avoid risks.
Risk Warning: Crypto investment carries high risks due to price volatility and economic instability. Please consider carefully before participating.