Simply put
- Ethereum prices kept climbing on Tuesday, leading to a remarkable 50% increase over the week.
- Bitcoin, Solana, and Dogecoin also showed notable gains in the last 24 hours.
- The rise in Ethereum is attributed to the anticipated Pectra network upgrade.
Ethereum has surged more than 8% within a single day, gaining momentum on Tuesday after a favorable inflation report and a renewed interest among investors in crypto and riskier assets.
The second-largest cryptocurrency by market cap dipped below $2,700 during late afternoon Eastern time before slightly rebounding. Still, it has skyrocketed by 51% in the past week, as reported by Coingecko.
“We’re mainly witnessing the sustained momentum of ETH,” said Carlos Guzman, a research analyst at Crypto Market Maker GSR. “ETH is finally in the spotlight after lagging behind in the last cycle, and investors are refocusing their attention as sentiment shifts.”
Ethereum began its upward trend from around $1,700 late last week, following a successful Pectra upgrade aimed at improving the network’s speed and efficiency. This market behavior seems to align with a perceived easing of tensions in international trade.
Tuesday’s rise surprised some analysts who had hoped for a larger increase after the latest consumer price index showed minimal change, with a 0.2% rise. Yearly inflation stands at 2.3%, close to the Federal Reserve’s 2% target, which, if met, could lead banks to ease their monetary policies.
“The market is reacting positively to favorable news on U.S. inflation. With a lower-than-expected CPI reading, it may set the stage for the Fed to lower interest rates,” Guzman commented, while also noting ongoing concerns regarding inflation during the latest Federal Reserve meeting. Nevertheless, he added cautiously, “The effects of tariffs haven’t yet been reflected in the data.”
Other altcoins are also performing well, with Solana’s tokens rising over 5% in the last day, while popular meme coins Dogecoin and Shiba Inu saw gains of nearly 4% each. Bitcoin, the largest cryptocurrency by market value, recently traded above $104,200, marking a 1.4% weekly increase.
Two of the three major equity indices ended the day in positive territory, with the tech-heavy NASDAQ and S&P 500 gaining 1.6% and 0.7%, respectively.
In remarks on the situation, Greg Magadini, director of derivatives at Amberdata, mentioned that ETH “has considerable potential, especially with risk assets rebounding rapidly.”
“Looking at positioning, we see that $2,800 has the most gamma for dealers, implying possible resistance points in the options market,” Magadini added.
However, he also noted that current pricing trends in options suggest the market isn’t ready for a sharp ETH rally. “Positioning appears to lack the necessary expansion here,” he stated.
