#Crypto Market Rebounds# Ethereum (ETH) has experienced its biggest rise since May 2021 after the Pectra update! Will the rally continue? Here are the details.

Ethereum recorded its largest daily gain since May 2021 following the successful activation of the Pectra update.
Ethereum (ETH) on Thursday evening (ET) rose above $2,200 with a 20% increase, recording its largest daily gain since May 2021 after the successful activation of the long-awaited Pectra update.
Ethereum recorded its largest daily gain since 2021, increasing by 20% after the Pectra update.
This rise occurred with the catalyst of technical and macroeconomic developments, the revitalization of investor optimism in the crypto markets, and the spread of a "risk-taking" atmosphere.
Presto Research analyst Min Jung stated, "ETH is finally closing the gap after lagging behind BTC for a significant part of the year."
"The latest Pectra upgrade helped regain some confidence, and the decline of ETH/BTC to around 0.02, down nearly 40% since the beginning of the year, is not surprising as buyers step in at these levels," he said.
Pectra: The Most Important Upgrade of Ethereum Since The Merge
The Pectra update activated on Tuesday represents the most significant technical advancement of Ethereum since the 2022 Merge that transitioned the network to Proof-of-Stake.
Pectra brings improvements in staking efficiency, validator management, and Layer 2 scalability. Analysts believe that these improvements could reduce congestion and increase the network's usability. This is particularly important as Ethereum competes with faster chains in the DeFi and NFT sectors.
LVRG Research Director Nick Ruck stated, "In addition to positive macroeconomic news, traders believe that the crypto industry has finally caught a second wind as a hedge against market uncertainty. As altcoins break free from the negative trend and find buying pressure with renewed risk appetite, investors are changing their outlook on crypto."
Analysts attribute part of the momentum in the market to the expected resumption of US-China trade negotiations, during which Treasury Secretary Scott Bessent is set to meet with Chinese officials in Switzerland. The negotiations have led to an increase in risk appetite in global markets, including stocks and cryptocurrencies.
The revival of Ethereum could be a turning point after months of underperformance compared to Bitcoin. In an environment where the technical foundation is strengthened by Pectra and macro winds are shifting, traders are closely monitoring whether this marks the beginning of a broader altcoin rally.
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