Ethereum (ETH) has posted its strongest daily performance in over three years, surging nearly 20% in the past 24 hours to reclaim the $2,200 level, hitting a two-month high in the process.
During Friday morning’s Asian trading session, ETH reached an intraday peak of $2,234, climbing from below $1,900 on Thursday. The move marks a 26% gain over the past two weeks and a massive 50% rebound over the past month, recovering from bear market lows near $1,400.
Pectra Upgrade Sparks Ethereum Momentum
The price rally comes just days after the successful Pectra upgrade went live on the Ethereum mainnet on May 7. The network enhancement appears to have reignited bullish sentiment across the Ethereum ecosystem.
According to CoinGlass, over $280 million in short ETH positions were liquidated in the past 24 hours—underscoring the intensity of the upward move. Crypto media outlet Bankless noted on May 9 that this marks Ethereum’s best day since 2021, although previous surges in May and November last year saw similar momentum.
Analysts Turn Bullish on ETH Outlook
Analysts are increasingly optimistic about Ethereum’s mid-term prospects. Popular crypto trader MMCrypto suggested that ETH could revisit the $3,700 level if it breaks out of its current wedge pattern. Meanwhile, Cas Abbé, a Web3 growth manager, highlighted the impact of the Pectra upgrade, noting that ETH’s annual inflation turned negative, dropping from 0.7% to -0.5% post-upgrade, making the asset deflationary once again.
He also pointed out that the daily ETH burn rate has doubled, contributing to the current price surge.
“We all know ETH has underperformed this cycle due to rising supply and lagging demand. If burn continues accelerating, supply will tighten, and demand should follow. A $3K ETH in Q2 is now in sight,” he added.
Ethereum at the Center of Tokenization and Stablecoin Growth
Ethereum’s rally is also fueled by its continued dominance in real-world asset (RWA) tokenization and stablecoin adoption. According to RWA.xyz, Ethereum holds a 58% market share for tokenized assets (excluding stablecoins), with nearly $7 billion on-chain. When stablecoins are included, Ethereum still leads with a 55% RWA market share, followed by Tron at around 30%, mainly driven by Tether (USDT) usage.
Ethereum educator Anthony Sassano noted that the ongoing “tokenization gold rush” is expected to drive mass adoption, and Ethereum remains at the core of that transition.
“Ethereum is the home of stablecoins and tokenized real-world assets. It’s positioned perfectly for the next wave of adoption,” he said.
With momentum building across both technical upgrades and ecosystem expansion, Ethereum (ETH) sees its best day since 2021 amid a 20% price rally, hinting at more upside potential in the weeks ahead.
