Why Is Ethereum (ETH) Price Rising Today?

 Highlights:

Ethereum is experiencing its strongest weekly surge

Major price drivers include the Pectra network upgrade, significant whale accumulation, and a widespread short squeeze.

Technical indicators suggest ETH could climb another 40% and reach $3,400.

Ethereum (ETH) has seen a powerful upward trend, gaining more than 37.5% in the week ending May 11 — including over 10% growth in just the past 24 hours. This marks the token's best performance in nearly four years.

1. Improved Global Trade Sentiment Fuels Optimism

A recent trade deal between the United States and the United Kingdom, announced on May 8, alongside renewed US-China trade negotiations, has strengthened investor confidence across financial markets. This has particularly benefited Ethereum and the broader crypto space, where risk appetite is on the rise.

2. Pectra Upgrade Enhances Ethereum Network

On May 7, Ethereum introduced a major network enhancement called the Pectra upgrade. Key features included:

Increased staking limits for validators.

Integration of EIP-7702, a new framework for account abstraction that improves user experience and flexibility.

These changes have boosted investor confidence and made Ethereum more scalable and user-friendly, setting it apart from other cryptocurrencies in terms of recent growth. Since the upgrade, ETH has outperformed the overall crypto market, which grew just 10.91% in the same period

3. Massive Short Squeeze Drives Further Gains

Ethereum’s futures market witnessed a large-scale short squeeze. Since May 8, traders betting on ETH’s decline have been forced to exit their positions, driving prices even higher. In total:

Over $437.94 million in short positions were liquidated.

$211.29 million in long positions were also closed during the same window.

This market pressure pushed Ethereum’s price up quickly, as liquidations triggered a wave of forced buying.

Conclusion:

Ethereum’s impressive price rally is being driven by a combination of global economic developments, a strong protocol upgrade, and strategic shifts in the futures market. If momentum continues, ETH could soon approach the $3,400 mark.

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