Ethereum Soars 20%, Achieving Its Largest Increase Since 2021, Driven by Pectra Upgrade’s Confidence-Building Effect.

Ethereum (ETH) surges 20% in response to the Pectra upgrade, outperforming Bitcoin (BTC) amid a broader crypto market rally.

Ether (ETH) led the charge in the crypto market during early trading hours in Asia, surging nearly 20%, reaching above $2,100, and marking its biggest gain since 2021. The price surge follows the successful activation of Ethereum’s highly anticipated Pectra upgrade, which has been widely received as a turning point for the network. The upgrade comes as Bitcoin (BTC) also sees significant gains, crossing the $100,000 threshold for the first time in three months.

Ethereum’s Pectra upgrade, considered its most significant protocol change since the 2022 Merge, introduces several notable enhancements, including an increase in the staking limit from 32 to 2,048 ETH (via EIP-7251), as well as improving wallet functionality through new account abstraction mechanisms (via EIP-7702). The upgrade also integrates nine other Ethereum Improvement Proposals (EIPs), marking a comprehensive shift in the network’s infrastructure.

“ETH is finally catching up after underperforming compared to BTC for most of the year,” said Ming Jung from Presto Research. “While Bitcoin approaches its all-time highs, Ether still sits almost 50% below its 2024 peak. The Pectra upgrade has certainly played a role in restoring investor confidence and prompting a surge in buying activity.”

Despite the positive momentum, analysts remain cautious about Ethereum’s long-term recovery. CryptoQuant recently noted that Ethereum’s network activity has stagnated since 2021, which could suggest that the recent rally may not be sustained. However, the positive market sentiment is undeniable, and investors are optimistic about Ethereum’s future prospects.

In a broader market update, Flowdesk highlighted a shift in investor behavior as Bitcoin’s price surpasses $100,000. The firm noted that investors are now moving away from caution and rediscovering a “risk-on” mindset, leading to a renewed appetite for high-risk, high-reward assets such as altcoins and structured products.

“Ethereum often acts as a leading indicator for the broader altcoin market, and its strong rally typically triggers a wave of buying across other altcoins,” said March Zheng, General Partner of Bizantine Capital. “This is an encouraging sign for the broader market.”

As Bitcoin continues to hover above $102,500, analysts are adjusting their price targets. Standard Chartered recently revised its second-quarter Bitcoin target to $120,000, calling its previous estimate too conservative. Meanwhile, the CoinDesk 20 index, which tracks the performance of major digital assets, has risen by over 10%, reflecting the ongoing strength in the crypto market.

The overall optimism in the crypto space continues to grow as Ethereum and Bitcoin demonstrate resilience and upward momentum.