Ethereum (ETH) has experienced its largest surge since May 2021 following the Pectra update! Will the rally continue? Here are the details.

Ethereum (ETH) On Thursday evening, (ET) surged over $2,200 with a 20% increase and recorded its largest daily gain since May 2021 following the successful activation of the long-awaited Pectra update.

Ethereum Recorded Its Largest Daily Gain Since 2021, Rising 20% After the Pectra Update

This rise occurred under the catalyst of technical and macroeconomic developments, with renewed investor optimism in the crypto markets and the spread of a "risk-taking" atmosphere.

Presto Research research analyst Min Jung said, "ETH is finally closing the gap after lagging behind BTC for a large part of the year."

"The latest Pectra upgrade helped regain some trust, and the drop of nearly 40% in ETH/BTC to the level of 0.02 since the beginning of the year has not been surprising for buyers to 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 for 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 have emerged from a negative trend and found 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, with Treasury Secretary Scott Bessent meeting with Chinese officials in Switzerland. The negotiations have led to an increase in risk appetite in global markets, including stocks and crypto.

The resurgence of Ethereum could mark a turning point after months of underperformance compared to Bitcoin. In an environment where Pectra strengthens the technical foundation and macro winds are shifting, traders are closely monitoring whether this is the beginning of a broader altcoin revival.