Ethereum Surges on Pectra Upgrade, ETF Inflows, Meta Rumors

Ethereum experienced a dramatic rally in early May 2025, surging over 40% from around $1,800 to above $2,500, driven by renewed risk appetite, institutional inflows, and the Pectra network upgrade. Institutional players like Abraxas Capital made massive withdrawals from exchanges, reducing ETH supply at key resistance levels and prompting profit-taking. Strong ETF inflows into both Bitcoin and Ethereum contributed to the rally, though analysts caution that sentiment and speculative activity may be the primary drivers rather than strong fundamentals. Rumors of Meta planning to launch stablecoins on Ethereum boosted price and trading volumes, signaling potential for broader adoption. Large crypto whales capitalized on volatility, shifting trading positions and locking in significant profits. The sustainability of Ethereum’s recovery will depend on continued fundamental improvements and broader adoption.