$ETH Ethereum has recently been able to make a comeback, mainly relying on a dual approach of technological upgrades and market sentiment. First, on the technical side, the Pectra upgrade completed on May 7 is key, raising the staking cap from 32 ETH to 2048 ETH, making it easier for institutional participation. Additionally, a new account abstraction feature has been added, allowing wallets to automatically pay transaction fees and perform bulk operations, making it more convenient for novice users. These improvements directly enhance network efficiency and user experience, attracting more developers to stay in the Ethereum ecosystem.

On the market side, short sellers have been severely squeezed. After the upgrade, prices skyrocketed, increasing by 40% in three days, forcing many short sellers to cover their positions, which in turn pushed up the token price. Furthermore, the approval of Ethereum spot ETFs in the United States has allowed institutional funds to enter through traditional channels, greatly increasing liquidity. The DeFi and NFT markets remain vibrant, and as a foundational platform, Ethereum naturally benefits from the rising tide.

The macro environment is also supportive, as the easing of trade tensions between the US and UK has alleviated market concerns, leading to a rebound in investors' risk appetite. Although competitor Solana is trying to capture market share, Ethereum has maintained its fundamental position due to its technological accumulation and ecological advantages. In simple terms, strong technical capabilities combined with market dynamics have allowed Ethereum to return to the center stage.