Ether Eyes Best Weekly Performance Since May 2021
Ethereum (ETH) is on track to register its strongest weekly performance in nearly three years, soaring over 37.5% in the week ending 11 May. This includes a sharp 10.3% gain in the last 24 hours alone. With Ether currently priced at $2,435, its upward momentum is outpacing the broader cryptocurrency market and even Bitcoin, which recently crossed the symbolic $100,000 mark.
Several factors have contributed to this bullish surge, including improved global trade sentiment, the successful rollout of Ethereum’s Pectra upgrade, a wave of short liquidations, and increasing accumulation by large investors known as “mega-whales”.
US Tariff Talks Spark Investor Confidence
The global financial landscape witnessed a boost in optimism following the announcement of a new trade agreement between the United States and the United Kingdom on 8 May, alongside the reopening of trade discussions between the US and China. These developments have improved risk appetite among investors, creating a positive ripple effect across financial markets, including cryptocurrencies.
Source: X
Ethereum, in particular, has benefited from this renewed confidence, with market sentiment favouring risk-on assets. Since 8 May, Ether has climbed over 34.3%, significantly outperforming the overall crypto market, which gained 10.91% during the same period.
Pectra Upgrade Drives Technical Appeal
Ethereum’s momentum has also been fuelled by the recent implementation of its much-anticipated Pectra upgrade on 7 May. This upgrade introduced key enhancements, including increased staking limits and account abstraction via EIP-7702. These improvements aim to make the Ethereum network more user-friendly, flexible, and scalable.
The update has been well received by the Ethereum community and institutional investors alike, reinforcing ETH’s growth prospects and encouraging bullish activity in both the spot and futures markets.
Short Squeeze and Futures Activity Amplify Gains
Ethereum’s sharp rally has triggered a significant short squeeze in the futures market. Since 8 May, approximately $437.94 million worth of short positions have been liquidated, forcing bearish traders to buy back ETH to cover losses. This, in turn, has further accelerated the upward price movement.
Ethereum mega-whale net positions change vs. ETH price. Source: Glassnode
Meanwhile, long liquidations have also amounted to $211.29 million, indicating high volatility during this price surge. Ethereum’s open interest — the total value of outstanding futures contracts — has jumped from $21.28 billion to $26.77 billion in just two days. At the same time, funding rates for Ethereum perpetual futures have risen from 0.10% to 0.15%.
These metrics point to increased bullish bias among futures traders, with more investors opening long positions and paying higher fees to maintain them, signaling expectations of continued price growth.
Mega-Whales Resume Accumulation
Adding further fuel to Ethereum’s rally is the return of “mega-whale” accumulation. On-chain data from Glassnode reveals that wallet addresses holding over 10,000 ETH have resumed their accumulation trend since late April. The total supply held by these large wallets has now exceeded 40.75 million ETH — the highest level since March 2025.
This renewed interest from institutional-sized investors suggests rising confidence in Ethereum’s long-term potential and indicates that they are positioning for further price appreciation.
Technical Setup Hints at $3,400 Target
From a technical analysis perspective, Ether is currently bouncing off a crucial ascending support line that forms the base of a long-standing symmetrical triangle on the monthly chart. This historical support level has previously led to significant price rallies, and its successful retest adds weight to the bullish narrative.
ETH/USD monthly price chart. Source: TradingView
The pattern now points to a potential 40% upside, with ETH possibly heading toward the triangle’s upper trendline around $3,400 in the coming months. Veteran trader Peter Brandt also echoed this sentiment recently, suggesting that ETH could be primed for a “moonshot” if momentum continues to build.
As Ethereum continues to outperform its peers in both fundamental upgrades and investor sentiment, the market will be closely watching whether this rally can sustain its momentum and break through major resistance levels in the near future.
