Ethereum's price surged over 40% from May 8 to 11, 2025, primarily 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 cap and account abstraction (EIP-7702 standard), which enhanced the network's usability and flexibility while reducing network fees. This upgrade improved the performance and appeal of the Ethereum network, boosting investor confidence.

Market Conditions

Starting from May 8, a massive short squeeze occurred in the Ethereum futures market, with liquidation amounts reaching up to $438 million, leading to a sharp price increase and creating a “short squeeze” upward spiral. The rise in total value of open contracts and the perpetual futures financing rates indicate bullish market sentiment.

Macroeconomic Environment

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

These factors collectively drove a significant increase in Ethereum's price. It is recommended to refer to relevant market analysis reports for more information.