Ethereum (ETH) is on fire, and it’s not just because of the latest upgrade. A weekly insights report released on May 14 by Bybit, the world’s second-largest crypto exchange by trading volume, says ETH is outpacing Bitcoin (BTC) and attracting attention from traders and investors. The report was created with analytics partner Block Scholes, and it provides a clear picture of what’s powering ETH’s latest surge and also that it is the start of something bigger.
What’s the catalyst? It’s a mix of technology, leadership, and macroeconomics. Ethereum’s 20% single-day price on May 7 was the strongest performance in years. While the recent Pectra upgrade aimed at improving Ethereum’s core infrastructure, which played a big part, Bybit says it’s not the only reason behind it.
One of the key factors was the liquidation of over $500 million in ETH short positions. As bets were wiped out, ETH’s price surged. At the same time, the broader market was relieved from global tariff tensions, which were giving crypto assets more room to jump.
Bybit’s report highlights a deeper transformation within Ethereum itself. Co-founder Vitalik Buterin recently gave a new roadmap that focuses on boosting network scalability and simplifying Ethereum operation. With a goal of up to 100x throughput, Ethereum’s future could be faster, leaner, and more developer-friendly while keeping decentralization intact.
Ethereum Steals the Spotlight from Bitcoin
ETH didn’t just outperform BTC in price — it took the lead across multiple market indicators. The ETH/BTC ratio has been rising since May 7, showing that traders are rotating out of Bitcoin and into Ethereum.
In the options market, the numbers tell a more compelling story. On May 8, ETH traders placed $60 million more in call options and a clear signal that many expect further gains. In contrast, Bitcoin’s derivatives market remained quiet without any major spikes in bullish or bearish sentiment.
Funding rates also shifted in ETH’s favor, while the skew measures trader positioning, which flipped dramatically. In April, there was a 20% skew towards puts. But in early May, calls dominated, with a 10% skew toward bullish positions.
This implied volatility, especially in short-term ETH options, has climbed as well. It shows that traders expect bigger moves from now on. All signs suggest that Ethereum is not only back, but leading the market in momentum recently.
So, will the rally last? That remains to be seen. Crypto markets are famously volatile, and nothing is guaranteed. But for now, Ethereum is enjoying the spotlight which is fueled by smart upgrades, confident leadership, and positive trader sentiment.
Bybit’s full report offers a deeper dive into the data behind ETH’s rally and what could come next. While Ethereum continues to gain traction and the broader crypto landscape shifts, all eyes are on how long ETH can keep it up in the coming days.
