Is Ethereum's recent strong rally due to the Pectra upgrade?
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Is Ethereum's recent strong rally due to the Pectra upgrade?
Ethereum has been overly FUD'd and needs a rediscovery of its current value.
Navigating Web3 tides with focused insightsAuthor: Haotian
With the recent significant rise in Ethereum $ETH, many are asking whether it's related to the recent Pectra upgrade. The answer may be no.
The Pectra upgrade is more like a "wrap-up" of the Cancun upgrade—mainly involving underlying optimizations and refinements rather than breakthrough technological innovations.
From a technical standpoint, the four EIPs included in the Pectra upgrade all point in the same direction: making Ethereum run more stably and efficiently. Standardizing state expiry with EIP-7044, redefining gas limits with EIP-7524, optimizing transaction pipelining with EIP-7697, and improving difficulty adjustments with EIP-6789—all are typical "tweaks and fixes" upgrades that resolve some edge issues left over after the Cancun upgrade.
The real driver behind Ethereum’s current price movement is actually value recovery following excessive FUD.
In recent months, Ethereum has indeed faced intense scrutiny: L2 liquidity fragmentation has been exaggerated into ecosystem fragmentation; performance comparisons with Solana have been interpreted as failures in technical direction; expansion of applications across various L2 ecosystems has fallen short of expectations; and technology narratives like restaking, modularity, and zk have failed to capture value effectively.
While all attention focused on Ethereum’s problems, key facts were overlooked: DeFi total value locked remains stable at $119B; the Cancun upgrade did significantly reduce L2 costs; ETF inflows continue to strengthen; and new narratives such as RWA and PayFi are primarily developing within the Ethereum ecosystem.
Ethereum’s fundamentals aren't nearly as bad as market sentiment suggests.
Institutional investors clearly saw through this emotional imbalance. The most notable example is Abraxas Capital’s massive purchase of 242,652 ETH (approximately $561 million). Moreover, between May 9–14, large ETH transfers (> $1M) increased significantly, and ETH balances in institutional wallet addresses clearly rose—indicating deliberate, large-scale institutional accumulation.
So if we must assign a logic to this Ethereum rally: was Ethereum simply over-FUDed, requiring a rediscovery of its true value—and institutions stepped in early to buy the dip?
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Haotian | CryptoInsight
