Ethereum surges over 20% in 24 hours driven by the Pectra upgrade. With ETH above $2000, is this rally the start of a bull run? Let's analyze.

Ethereum (ETH) Surpasses $2000 : Beginning of a Bullish Rally ? The price of Ethereum (ETH) has surged by over 20% in just 24 hours, crossing the $2,000 psychological threshold. Ethereum price evolution since Pectra – Coinmarketcap This surge coincides with the successful deployment of the Pectra upgrade on May 7, 2025, enhancing scalability and user experience.

Pectra introduces 11 Ethereum Improvement Proposals (EIPs), including EIP-7251, raising the staking limit from 32 to 2,048 ETH, and EIP-7702, enabling fees in stablecoins like USDC or DAI. These enhancements make Ethereum more appealing to validators and users, boosting investor confidence. Ethereum’s rise has also been fueled by Bitcoin’s surge.

The price of BTC has surpassed $100,000 on Thursday, May 8, reaching as high as $103,000. Ethereum Technical Analysis : Will ETH Continue its Bullish Trend ? The break above $2,000 by Ethereum represents a major bullish signal, with this level acting as a key resistance for several months.

The price remains above the recent support at $1,757, and the 50-day Exponential Moving Average (EMA) around $1,743 reinforces this momentum. The daily RSI, near 65, reflects a bullish momentum without overheating, leaving room for a further rally. A daily close above $2,000 could propel ETH towards the next resistance at $2,100.

Key Levels in the Short Term $2,100 : Next major resistance. A breakout would confirm a test of $2,300. : Next major resistance.

A breakout would confirm a test of $2,300. $1,757 : Critical support. A drop below would indicate a correction risk.

Insufficient trading volume could turn this breakout into a bull trap, especially with Bitcoin dominance at 58%, limiting altcoin gains. Ethereum (ETH) Price Forecast : Which Strategy to Adopt ? Despite the excitement surrounding Pectra and ETFs, risks persist.

Bitcoin’s dominance at 58% hinders altcoins, and a reversal of BTC below $100,000 could lead ETH into a correction. Recent massive liquidations ($140 million) highlight high speculation, increasing volatility. Additionally, competition from layer-2 solutions like Arbitrum or Optimism could divert some DeFi activity from Ethereum.

On the opportunity side, the total value locked (TVL) in DeFi on Ethereum remains robust, nearing $80 billion, strengthening its ecosystem. A dollar-cost averaging (DCA) strategy between $1,800 and $1,950 could be wise, with close monitoring of resistances at $2,100. Can Ethereum turn this rebound into a sustainable bull run ?

Bulls will need to consolidate above $2,000 and attract more volume to achieve that. More on this topic :