Ethereum had a big day on Friday, with the price climbing above $2,500 for the first time ever. The crypto, once down more than 90% from its peaks, has seen an extraordinary comeback. It has rocketed almost 100% since it bottomed out at the beginning of last April. The recent price surge has led to heated debate in the financial community about whether this rally is sustainable.
The undercurrent spurring many to Ethereum’s renewed success seems to be thanks to the recent success with Ethereum’s ETH Pectra upgrade. Developer and user adoption has been high with this upgrade, resulting in more than 11,000 EIP-7702 authorizations in less than a week of upgrade availability. The EIP-7702 authorizations are intended to enhance scalability and flexibility of Ethereum’s functionality. These improvements go a long way to alleviate criticisms that have historically dogged this network.
Skepticism remains about whether this is the real Ethereum moonshot. Market analysts and investors alike are looking to more growth potential. They’re doing all of this while looking with clear eyes at the historic volatility of the cryptocurrency market. Many advocates and researchers are optimistic about the momentum at this moment. They caution that it remains unclear whether this will result in permanent long-term improvements.
As Ethereum’s price perception turns bullish once again, with ETH holding above $2,500 consistently, market participants watch trading volumes vs. investors’ bullish/bearish sentiment closely. The crypto space is well known for its extreme volatility, making most rightfully tiptoe around the topic. Investors need to be aware of the most recent changes occurring in Ethereum’s broader landscape. Modifications have a tremendous impact on pricing spikes.