Last night, the U.S. Consumer Price Index (CPI), which came in below market expectations, showed that inflation has not heated up, strengthening market expectations for the Federal Reserve to lower interest rates this year, with Bitcoin briefly approaching $105,000 again.
Meanwhile, Ethereum is even stronger, breaking through $2,700 this morning (14th) and reaching a high of $2,738. As of today (14th) at 9:30, it reported $2,702, surging 10% in the last 24 hours to its highest in two and a half months, performing the best among the top ten tokens.
Where does the upward momentum come from?
From a fundamental perspective, the Pectra upgrade launched on May 7 not only improves network efficiency again but also introduces account abstraction features (EIP-7702), allowing users to manage wallets more flexibly. The optimized staking mechanism raises the validator ETH cap from 32 ETH to 2048 ETH, while introducing flexible withdrawal methods, making it easier for institutions and individuals to maintain network security.
Additionally, Ethereum continues to attract attention from various institutions, with expectations that it may gain SEC approval for ETH staking this year, and giants like BlackRock strengthening their efforts in RWA tokenization, which are expected to enhance Ethereum's liquidity and long-term value.
Market analyst VirtualBacon recently predicted that if Bitcoin reaches $200,000, Ethereum's price could also reach $10,000.
ETH Technical Analysis
According to Fxstreet analysis, ETH is currently also in an upward trend technically:
Breaking the downward trend line (DT), which has suppressed all upward trends since the December peak.
Above its rising red 20-day simple moving average, which is positioned above the (blue) 50-day simple moving average.
Its only short-term obstacle is the 200-day SMA (red line in the chart below), which has just broken through and retreated. If it can stabilize above this line, the short-term target may aim to reach $3,100.
However, due to the many uncertainties in the current global economy, liquidity is still not sufficient to support a major bull market, and many bearish individuals judge that the current phase is merely a 'dead cat bounce' rather than a complete reversal. Should a significant pullback occur, ETH may challenge the support at $2,100.
