$ETH
"What happened with Ethereum's 40% surge in just 3 days?" It directly topped the Douyin hot list at number one, and there’s big news in the crypto world again!
In just three days, the price of Ethereum skyrocketed, soaring from $1,811 all the way up to $2,597, a 40% increase that was more thrilling than a roller coaster!
There are numerous reasons for this surge in Ethereum. Firstly, the successful completion of the Pectra upgrade on May 7 is considered an important milestone in its development history. This upgrade brought 11 key improvements, increasing the validator single address staking limit from 32 ETH to 2,048 ETH, greatly enhancing its appeal to institutional investors and attracting a large influx of funds. The number of blobs increased from 3 to 6, significantly improving theoretical throughput, strengthening transaction processing capabilities, and lowering Layer 1 transaction costs, making it more competitive. EIP-7002 allows validators to exit safely, reducing risks, and the subsequent Fusaka upgrade plan paves the way for large-scale application scenarios, boosting investor confidence to unprecedented levels, leading to a buying frenzy that propelled prices upward.
Recently, the easing of the global trade situation has also brought positive news for Ethereum. On May 8, the U.S. and the U.K. reached a tariff agreement, and on the same day, China-U.S. economic talks resumed, increasing market risk appetite. Bitcoin broke through the $100,000 mark, U.S. stocks rebounded strongly, and Ethereum benefited, leading to a price rise.
The "short squeeze" in the Ethereum futures market was also an important factor in this surge. Starting from May 8, the wave of short covering triggered a "squeeze," with short liquidations amounting to as much as $438 million within 72 hours, far exceeding the $211 million in long positions. Shorts were forced to buy back ETH to cover their positions, driving the price continuously upward and creating a cycle of "price rise - short covering - further price rise." The total value of open contracts surged from $21.28 billion to $26.77 billion, and the perpetual futures financing rate rose from 0.10% to 0.15%. The market became active, dominated by longs, and bullish sentiment was strong.
This surge in Ethereum is the result of a combination of various factors such as technological upgrades, macroeconomic conditions, and the futures market. However, the crypto market fluctuates like a roller coaster, full of uncertainty. Do you think Ethereum can continue to rise? Let's discuss in the comments!
