Last night, the lower-than-expected U.S. Consumer Price Index (CPI) was released, showing that inflation has not heated up, which strengthened the market's expectation of the Federal Reserve cutting interest rates this year, and Bitcoin once again approached $105,000.
Ethereum was even more robust, breaking through $2,700 early this morning, reaching a high of $2,738, and as of 9:30 today, it was trading at $2,702, surging nearly 10% in the past 24 hours to reach a two-and-a-half-month high, performing the most outstanding among the top ten tokens.
Where Does the Upward Momentum Come From?
From a fundamental perspective, the Pectra upgrade launched on May 7th not only further improved network performance but also introduced account abstraction functionality (EIP-7702) to allow users to manage wallets more flexibly. The staking mechanism optimization raised the ETH limit for validators from 32 ETH to 2,048 ETH, while introducing flexible withdrawal methods, making it easier for institutions and individuals to maintain network security.
Additionally, Ethereum continues to attract institutional attention, with expectations of SEC approval for ETH staking this year and BlackRock and other giants strengthening RWA tokenization efforts, which are likely to enhance Ethereum's liquidity and long-term value.
Market analyst VirtualBacon recently predicted that if Bitcoin reaches $200,000, Ethereum's price could also reach $10,000.
ETH Technical Analysis
According to Fxstreet analysis, ETH is currently in an upward trend technically:
- Breaking through the descending trendline (DT), which has been suppressing all upward trends since the December high point
- Above its rising red 20-day Simple Moving Average, which is positioned above the (blue) 50-day Simple Moving Average
Its only short-term obstacle is the (red line in the chart) 200-day SMA, which has just been broken through and then pulled back. If it can stabilize above this line, the short-term target may reach $3,100.
However, due to the many uncertainties in the global economic landscape and liquidity not yet supporting a major bull market, many bearish analysts believe the current stage is a "last hurrah" rather than a complete reversal. If a significant pullback occurs, ETH might test the $2,100 support level.
