Ethereum Just Had Its Biggest Jump Since 2021 – Here’s What Triggered It

Key Points

• Ethereum surged nearly 29% following the successful deployment of the Pectra upgrade.

• Pectra improves staking, scalability, and user experience, marking the network’s most significant update since The Merge.

• Altcoin momentum and easing trade tensions contributed to Ethereum’s largest one-day gain since May 2021.

Ethereum (ETH) soared nearly 29% from $1,939 to over $2,400 on Friday morning, marking its sharpest single-day gain in almost four years.

The sudden spike follows the network’s Pectra upgrade, described by core developers as its “most ambitious” since Ethereum transitioned to proof-of-stake in 2022.

As of writing, Ethereum is trading at $2,339, up more than 20% on the day.  The price movement comes after a multi-month drawdown that saw ETH lose over 30% from its March highs.

Ethereum’s Pectra Upgrade Restores Confidence

On Wednesday, Ethereum developers successfully deployed Pectra, a major network update aimed at improving scalability, staking efficiency, and user experience. The upgrade introduces features such as account abstraction, increased validator flexibility, and enhanced Layer 2 compatibility—all intended to optimize Ethereum for both end users and infrastructure providers.

“ETH is finally catching up after lagging behind BTC for most of the year,” said Min Jung, research analyst at Presto Research. “The recent Pectra upgrade has helped restore some confidence, and with ETH/BTC down nearly 40% YTD, it’s not surprising to see buyers stepping in at these levels.”

The upgrade marks Ethereum’s third major milestone since The Merge and appears to have reignited investor interest, particularly after a difficult stretch of price action. According to Investing.com, this is Ethereum’s largest one-day rally since May 2021.

Trade Talks and Risk-On Sentiment

The rally also coincides with improving macro sentiment. Bitcoin crossed $100,000 this week after President Donald Trump announced a trade agreement with U.K. Prime Minister Keir Starmer, easing some investor fears about global tariff escalation. U.K. Treasury officials called the pact “a huge relief,” with markets responding positively across risk assets.

Altcoins followed Ethereum’s lead. Meme coin Pepe (PEPE) jumped over 43%, while Uniswap (UNI) and AI-linked token Virtuals (VIRTUAL) rose 21.5% and 24.3% respectively. The total crypto market cap climbed 3.5% to $3.37 trillion.

Although ETH spot ETFs in the U.S. recorded outflows for the third consecutive day, sentiment has shifted, and traders are increasingly positioning for further gains in altcoins amid renewed optimism.

“Traders believe the crypto industry may have finally found its second wind,” said Nick Ruck, director at LVRG Research. “Investors are changing their perspectives on crypto now that altcoins have departed from a negative trend and found buying pressure.”

Will ETH Sustain the Rally?

With Ethereum back above $2,300, the focus turns to whether the rally can sustain. Analysts point to the combination of positive protocol developments and macro-driven demand as key drivers.

Meanwhile, Bitcoin continues to hover above $102,000, bolstered by expectations of U.S. rate cuts later this year and renewed U.S.-China trade negotiations.