$ETH Ethereum has regained momentum, recording approximately an 8% gain in just 24 hours. Since the Pectra update on May 7, the digital asset has increased by more than 50%, making it one of the most efficient digital assets this month.
Did the Pectra update trigger the ETH rally?
After a pause that raised questions among observers, Ethereum (ETH) has seemingly regained its momentum, increasing its value by 8% in just 24 hours. In fact, since the Pectra update on May 7, ETH has risen by more than 50%, making it one of the most successful digital assets of the month.
The surge in the value of the leading digital asset is partly explained by the news that Nasdaq-listed Sharplink Gaming plans to use ETH as the primary asset of its treasury.
It was reported that the gaming company plans to achieve this through private investments in public stocks totaling $425 million (PIPE).
Additionally, it is reported that the increase in open interest in Ethereum futures to $36.1 billion, a record figure, also indicates a rise in institutional interest.
Some analysts believe that the increased use of the digital asset by institutions supports its current price levels in US dollars and contributes to a rise in value above $3,000 in the near future.
One such analyst, Arthur Azizov, founder and investor at B2 Ventures, stated that:
“The stage for a future breakout at the $3,000 level is being set right now.”
Like his colleagues, Azizov sees a clear rise in institutional interest in ETH.
Technical analysis shows that ETH "has tested the strong level of $2,750 twice in the month," indicating either a pullback or a sharp breakout, however, Azizov noted that current signals indicate the latter.
"Even a breakout through the nearest zone of $2,670-$2,700 confirms a very strong bullish pattern from a descending triangle. As far as I know, this setup preceded continuous increases in previous cycles. Add to this the RSI indicator around 68, which is not yet overbought, and you get a configuration with bullish sentiment and room for growth before a correction,”
said Azizov.
B2 Ventures also agreed that the fundamental indicators of the digital asset, including Sharplink Gaming's plans for Ethereum treasury, support bullish sentiment.
However, Azizov warns of risks, particularly regarding the use of leverage in futures markets.
He noted that this could increase volatility and trigger a sharp decline below the support zone of $2,550-$2,450. In his opinion, this could easily cause a "waterfall of selling."