ETH was still at 1800 yesterday, but it has soared to 2400 today, a 33% surge in two days. This surge has stunned the entire market. A few days ago, ChainThink was firmly bullish. At that time, I saw that BTC’s target was around 102,000. By comparison, ETH should be around 2100. It has far exceeded expectations. Should we lock in profits in time or let the money fly? Why did it suddenly surge this time? Today, I will give you the answer
First of all, let me state the conclusion directly. This time ETH has really broken through, really broken through, really broken through. I say it three times! The upper resistance has moved up to 2500/2700/3000. Those who are shorting should put away their hands that can't be restrained! Those who have opened positions should continue to hold on.
Ethereum’s Pectra Upgrade is Seriously Underestimated
On May 7, Ethereum completed Pectra, the most important upgrade since the 2022 "merger". This upgrade includes 11 Ethereum Improvement Proposals (EIPs), the most in history, with the core goal of improving network efficiency and user experience. Account abstraction allows users to use stablecoins such as USDC and DAI to pay gas fees, reducing transaction costs by more than 50%;
More importantly, several tips have reconstructed the ETH staking ecosystem. EIP-7251 significantly increased the staking limit of a single account from 32 ETH to 2048 ETH, supporting institutions such as BlackRock to manage millions of ETH with a single account, completely solving the operational pain points of decentralized management of multiple nodes, and completely clearing the way for large institutions;
Secondly, EIP-7002 introduces an instant withdrawal mechanism triggered by smart contracts, which completely subverts the queuing rules of traditional staking. Previously, ETH staked in ETFs had to go through a 57-day entry waiting period and a 28-day exit buffer period. After the upgrade, funds can be redeemed within a few hours, which may significantly increase the staking rate of Ethereum in the future.
In general, more and more institutions are facilitating the inflow and outflow of funds, and the staking of Ethereum will reach a new level. Therefore, there will be institutions holding ETH for staking, and the amount of ETH circulating in the market will be further reduced in the future, pushing up Ethereum.
The Air Force is too large to serve as fuel
Just before and after the Pectra upgrade, the market was filled with strong bearish sentiment. Data showed that the proportion of short positions in ETH futures open contracts once exceeded 62%, a three-month high, and the funding rate of some exchanges fell to -0.15%. In the past 24 hours, 200,000 people around the world were liquidated, and the amount of ETH short positions liquidated was 393 million US dollars, exceeding the amount of BTC, a nearly six-month high.
Collateralized ETFs are coming
The direct beneficiaries of Pectra's upgrade will be the hotly debated pledge ETF. In April this year, China Asset Management (Hong Kong)'s Ethereum ETF was approved to provide pledge services, becoming the world's first compliant product that can use 30% of its assets for pledge. It will be officially launched on May 15. This breakthrough has dual significance:
Innovation in income model: The annualized return on staking is approximately 4.5%, which, combined with the rise in ETF prices, far exceeds that of traditional cryptocurrency funds.
Regulatory breakthrough: The approval of the Hong Kong Securities and Futures Commission opens a window for the US SEC to re-examine pledged ETFs. BlackRock, Fidelity and other institutions have submitted revised applications to the SEC and plan to launch similar products in Q3 2025.
The new chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, known as the “crypto dad,” will have reason to step up the implementation of a collateralized spot Ethereum ETF;
Technically, it has now broken through the downward trend line that has lasted for more than three months. As long as the retracement does not effectively fall below the key support of 2100, there is still hope that it will continue to rise and hit the key target of 2700-3000 throughout May.
Official report from the Chinese community of Chain Think Tank
Official account: chainthinktank
