From May 8 to May 11, 2025, the price of Ethereum surged over 40%, mainly due to the combined effects of technological upgrades, market conditions, and the macroeconomic environment.

Technological Upgrades

On May 7, Ethereum successfully implemented the Pectra upgrade, introducing improvements such as a higher staking limit and account abstraction (EIP-7702 standard), enhancing the network's usability and flexibility while reducing network fees. This upgrade improved the performance and attractiveness of the Ethereum network, boosting investor confidence.

Market Conditions

Since May 8, there has been a massive short covering in the Ethereum futures market, with a liquidation amount reaching $438 million, leading to a sharp price increase and forming a 'short squeeze' upward spiral. The rise in the total value of open contracts and the perpetual futures financing rate indicate bullish market sentiment.

Macroeconomic Environment

The easing of global trade tensions has created a positive atmosphere for the cryptocurrency market. On May 8, the United States and the United Kingdom reached a new trade agreement, and high-level economic talks between China and the U.S. were held in Geneva, Switzerland on May 10, which boosted market risk appetite.

These factors collectively drove the significant rise in Ethereum's price. It is recommended to consult relevant market analysis reports for more information.