Encouraged by Trump's announcement of a trade tariff agreement with the UK and the upcoming US-China talks in Switzerland, Bitcoin climbed to $104,000 this morning, reaching a three-month high and driving the overall cryptocurrency market upward.
In this rally, Ethereum (ETH), which just completed the Pectra upgrade, performed particularly impressively, rising over 20% in the past 24 hours. After noon, it launched a new round of price increase, momentarily reaching $2,459, rebounding 75% from its early April low point.
As the second-largest cryptocurrency by market cap, such a stunning surge makes one wonder if it dropped too much before or if the upgrade truly made it so strong...
ETH Short Sellers Liquidated First
What's certain is that ETH short sellers contributed significantly. According to Coinglass data, ETH liquidations in the past four hours reached $75.13 million, 265% of BTC's, showing many ETH short investors were cleared by the rapid price surge.
Additionally, on-chain data revealed that the wallet seemingly belonging to Trump's World Liberty Financial purchased $3.5 million of ETH earlier.
Core Contents of Pectra Upgrade
Currently, there aren't many short-term positive factors for Ethereum, besides short seller fuel, except for the Pectra upgrade completed this week. This upgrade brings three core updates aimed at further optimizing network performance and ecosystem.
- Smart Account Wallet Function (EIP-7702): Account abstraction supports batch transactions, gas fee sponsorship, and smart sessions, enhancing wallet user experience and transaction efficiency.
- L2 Data Storage Capacity Doubled: Pectra expands Blob transaction capacity, increasing data throughput for Layer 2 solutions (like Optimism and Arbitrum) by twice, reducing transaction costs.
- Validator Experience Improvement: The upgrade optimized staking and validation operations, reducing technical barriers and increasing participation.
Whether ETH's price truly starts a new wave of growth or is just a short-term short squeeze requires more time to observe.
