Volatility is shaking the cryptocurrency market these days.
Bitcoin has heated up the market again by recovering to $100,000.
As Bitcoin, the leader of cryptocurrencies, moves, expectations for the coin market are rising again.
Recently, attention has turned to a coin that has surged rapidly—Ethereum.
In just a few days, Ethereum has skyrocketed.
It has risen more than 15% in a day (based on 24 hours) and nearly 30% in a week, becoming the star of the virtual asset market.
It’s outperforming Bitcoin in terms of returns—let’s find out why.
Why Did Ethereum Skyrocket in the Short Term?
First, let’s take a brief look at the market structure.
On just one day—the 9th—about $1.2 billion worth of derivative positions were forcibly liquidated.
Most of these were short positions betting on a decline.
In simple terms, these are short sells.
Bitcoin saw $340 million in shorts liquidated, and Ethereum saw $280 million—totaling around $620 million in shorts cleared.
Investors betting on a fall were forcibly liquidated, which brought in a wave of buyers and caused prices to surge.
Highly leveraged investors were unable to escape Ethereum’s sharp rise.
Technical Triggers for the Surge
Ethereum recently underwent a major network upgrade called “Pectra.”
This upgrade significantly reduced transaction fees and greatly improved network efficiency, enhancing the user experience.
Another key change was in the staking structure.
Previously, validators needed to stake 32 ETH to receive rewards, but now they can stake up to 2,048 ETH per account.
This creates a more favorable environment for institutions holding large amounts of ETH.
In conclusion, the upgrade lowered entry barriers for institutions and optimized compound interest-based rewards in a positive direction.
Institutional Movement
Before Ethereum exceeded $1,900, more than 85,000 ETH—worth about $200 million—was withdrawn from Binance.
Around the same time, over $1 billion in Tether (a stablecoin) was newly issued.
This suggests institutions are preparing to enter the crypto market.
Institutional buying is also a strong signal for retail investors, which contributes to Ethereum’s long-term positive outlook.
Global Economic Trends
Global political and economic factors are also influencing Ethereum’s price.
The U.S. and U.K. signed a trade agreement, easing economic tensions.
Trump’s tariff policies are being relaxed, and global trade is showing signs of normalization.
This has revived investor sentiment toward risk assets, which is reflected in the crypto market.
Ethereum Outlook: Better Than Bitcoin?
Ethereum has more technical potential than Bitcoin, making it more attractive for concentrated investment.
Many investors are wondering if now is the right time to buy.
Currently, Ethereum is trading at around $2,500.
In November 2021, Ethereum hit an all-time high of $4,800—now it’s about half that level.
According to CryptoQuant, this level of undervaluation hasn't been seen since 2019.
They claim Bitcoin is overpriced while Ethereum remains undervalued.
However, buying just because it’s far below its peak is risky.
Sharp rises are often followed by corrections, especially for leveraged traders.
Keep monitoring the upgrade’s effectiveness, overall market liquidity, and regulatory risks.
Events that drive price spikes often disappear, leading to declines.
The network upgrade, institutional capital inflow, and improved global investor sentiment have all contributed to a more positive outlook.
As Ethereum remains undervalued compared to Bitcoin, market attention is accelerating the uptrend.
Surges bring optimism, but also profit-taking, so risk management is crucial.
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