Ethereum Price Rally Tests Staying Power as Analysts Eye Fundamentals Over Hype
Ethereum surged nearly 40% last week, rising from approximately $1,800 to $2,500, driven by renewed risk appetite in digital assets due to easing trade tensions and a significant network upgrade. U.S. President Trump's announcement of constructive talks with China and a limited trade agreement with the U.K. boosted macro optimism, leading to substantial gains in traditional equities. However, digital assets like Bitcoin, Ethereum, and Solana experienced declines as profit-taking occurred after the recent rally. Analysts express skepticism about the sustainability of the rebound, emphasizing the need for stronger fundamentals rather than sentiment-driven movements. Ethereum's Pectra upgrade, launched on May 7, enhanced staking limits and wallet usability, contributing to renewed interest. Current models suggest a 20% chance Ethereum could exceed $4,000 by Christmas, but analysts warn that without sustained institutional support and regulatory clarity, consolidation may occur before reaching new highs.
