Ethereum Rally Tests Fundamentals Over Hype

Ethereum Surges 40% Following Network Upgrade and Trade Optimism

• Ethereum’s price increased from approximately $1,800 to $2,500 last week.
• The Pectra upgrade on May 7 boosted Ethereum’s network capabilities.
• Ethereum spot funds experienced $55 million in outflows.
• Volatility models estimate a 20% chance of Ethereum reaching $4,000 by year-end.
• Bitcoin spot ETFs saw $600 million in net inflows last week.

Ethereum’s recent rally was driven by a successful network upgrade and easing global trade tensions, pushing its price up nearly 40% to $2,500. Despite this surge, Ethereum ETFs faced $55 million in outflows as crypto-native investors led the charge.