#squarecreator - Ethereum regains momentum: What is behind the renewed interest? The Pectra update as a key catalyst.

$ETH - One of the reasons behind the renewed interest in Ethereum is the recent implementation of the Pectra update. This technical upgrade has been considered by many analysts as a fundamental advance for the Ethereum ecosystem, improving aspects such as scalability, efficiency, and security of the network.

Min Jung, analyst at Presto Research, commented on this:

"ETH is finally regaining ground after lagging behind BTC for most of the year. The recent Pectra update has helped restore some confidence."

It is no coincidence that Ethereum experienced a 20% increase last week, surpassing $2,200, right after the update. According to The Block, ETH was trading at $2,614.33 on Tuesday afternoon, marking a daily surge of 6%.

ETH/BTC and the historical lag that begins to correct

For much of 2024, Ethereum has lagged behind Bitcoin's performance. The ETH/BTC pair was down 40% so far this year, trading around 0.02. This relative undervaluation has been seen by many institutional investors as an entry opportunity, something confirmed by the purchase of Abraxas.

As Jung pointed out, "it's not surprising to see buyers coming in at these levels" given the historical differential between the two assets. Recent behavior suggests that Ethereum may be entering a phase of "revaluation" against Bitcoin.