Ethereum Pectra Upgrade Triggers 31% Price Jump, But Can it Cross $2,500

Ethereum soared 31% post-Pectra upgrade to $2,366, sparking $12B in ETH sell-offs as traders cashed out gains.ETH faces $27.8B sell pressure near $2.5K; breaking resistance requires absorbing 11.56M coins bought at higher prices.Ethereum surged 31% in one day after its latest upgrade went live, marking the sharpest rise since late 2021. Prices climbed to $2,366, hitting a peak not seen in two months. The jump followed the activation of the Pectra upgrade, which altered market activity and sparked mixed reactions among holders.Exchanges reported $15.6 billion in net inflows after the upgrade, with $12 billion worth of ETH sold on May 8 alone. This level of selling hasn’t occurred in over five months, hinting that many chose to cash out as prices spiked. Such moves often signal caution, as traders secure short-term gains rather than holding for higher targets.Source: GlassnodeData tracking purchase zones shows roughly 11.56 million ETH were acquired between $2,493 and $2,915. To push past $2,500, Ethereum must absorb sell orders linked to this range, where approximately $27.8 billion in holdings await exit opportunities. This creates friction; upward moves could stall if sellers overwhelm buyers near this threshold.Source: IntoTheBlock – Ethereum IOMAPCurrent prices hover just below $2,500, a level last tested months ago. Breaking past this point requires either sustained buying or reduced sell pressure. If ETH fails to hold above $2,344, a retreat toward $2,141 becomes plausible, wiping out portions of the recent rally.Source: ETH/TradingviewConversely, broader market optimism—such as Bitcoin rallying beyond $103,000—might propel Ethereum past $2,513. Securing this as support could open a path toward $2,654, shifting the tone from cautious to bullish.The next few days will test whether recent gains reflect temporary excitement or durable demand. While upgrades often spur short-term action, lasting moves depend on balancing trader psychology with macroeconomic factors. For now, Ethereum’s path hinges on two variables: profit-taking habits and Bitcoin’s price direction. Either could tip the scales sharply in the coming weeks.Source: ETH/TradingviewEthereum is currently priced at $2,309.40, reflecting a 4.57% intraday increase, continuing a sharp rebound that began in April. After bottoming near $1,400, ETH has climbed nearly 80%, with notable gains of +56.82% in the past month and +25.61% this past week, marking it as one of the strongest large-cap recoveries in the crypto space.However, it still lags on a longer-term basis, with -30.68% year-to-date performance and -26.18% over six months, suggesting the current move may still be early in a full trend reversal.The major catalyst behind Ethereum’s renewed strength is the implementation of the Pectra upgrade, which introduced enhanced functionality including the groundwork for EIP-7702.This proposed standard will allow externally owned accounts (wallets) to operate like smart contracts, enabling fee delegation and alternative asset-based gas payments—important for onboarding new users and enterprises.Source: ETH/TradingviewOn the technical side, ETH has broken above a multi-month resistance zone and is approaching the critical $2,500 level. This price region aligns with both psychological resistance and Fibonacci confluence. If price sustains above that range, the next likely targets are $2,770 and eventually $2,950. Current market structure is forming an ascending triangle, with the 200-day EMA acting as trailing support near $2,150.Ethereum rolled out the #Pectra upgrade on Wednesday, its most significant overhaul since the 2022 Merge. This comprehensive update introduces 11 #Ethereum Improvement Proposals (EIPs) aimed at improving scalability, user experience, and staking efficiency.Key Highlights:... pic.twitter.com/E3clH7URFH— Sygnum Bank (@sygnumofficial) May 9, 2025Institutionally, Ethereum continues to be the dominant platform for RWA (real-world asset) tokenization, stablecoin issuance, and DeFi infrastructure. Sygnum Bank, among others, has reaffirmed its preference for Ethereum due to its strong security and decentralization.The post Ethereum Pectra Upgrade Triggers 31% Price Jump, But Can it Cross $2,500 appeared first on ETHNews.