Cryptocurrencies Surge as Ethereum Leads the Rally
In recent days, the cryptocurrency market has seen a significant surge in prices. Among them, Ethereum (ETH) has been the standout performer, soaring more than 40% within 72 hours, with its price briefly approaching $2,600. Other major cryptocurrencies, including Bitcoin, XRP, BNB, Solana, Dogecoin, and Cardano, also posted impressive gains.
Analysts suggest the recent rally across the crypto market is tied to easing global trade tensions. Ethereum’s leadership in this rally is largely attributed to a recent technical upgrade.
Ethereum Soars Over 40% in Three Days
Over the past three days, Ethereum has experienced remarkable price action, jumping from $1,811 to a high of $2,597.68—an increase of 43%—outpacing Bitcoin and other major digital assets.
As of press time, Ethereum is trading around $2,540, with a 7-day gain of 39.62%. Bitcoin is hovering near $104,000, up 8.52% over the past week. Solana surged over 21%, BNB rose more than 10%, Cardano gained over 15%, and Dogecoin jumped by 37% during the same period.
These numbers indicate that Ethereum has been at the forefront of a broad-based crypto rebound. Buoyed by optimism surrounding the network’s recent upgrades and a more positive global macro backdrop, Ethereum is on track for its biggest weekly gain since 2021.
The Pectra Upgrade Sparks Renewed Investor Confidence
Ethereum’s latest rebound reflects growing investor interest in its ongoing technical improvements. On May 7, Ethereum successfully implemented the "Pectra" upgrade, introducing a series of critical enhancements. This includes a higher staking cap and the introduction of EIP-7702—a standard enabling account abstraction. These changes significantly enhance Ethereum’s usability and flexibility, while also helping reduce network fees.
This technical progress not only boosts the functionality of the Ethereum network but also instills new confidence among investors. It’s seen as a crucial step to stay competitive amid the rapid rise of rivals like Solana.
A Classic Short Squeeze Propels ETH Higher
Ethereum’s price was further boosted by a textbook short squeeze that began on May 8. According to market data, short positions in Ethereum futures were rapidly liquidated, with total liquidations reaching $438 million—more than double the $211 million liquidated from long positions. The sharp upward move forced bearish traders to buy back ETH to cover their positions, fueling a self-reinforcing price surge.
Open interest in Ethereum futures soared from $21.28 billion on May 8 to $26.77 billion on May 10. Weekly funding rates for perpetual futures also rose from 0.10% to 0.15%, indicating an influx of new long positions and a willingness among bullish traders to pay extra to maintain their positions—clear signs of strong bullish sentiment in the ETH derivatives market.
Trade Tensions Ease, Risk Appetite Returns
On a macro level, the easing of global trade tensions has played a significant role in the current crypto rally. On May 8, the U.S. and U.K. reached a new trade agreement that included rolling back some tariffs and expanding market access for certain goods. Additionally, on May 10, high-level economic and trade talks between China and the U.S. began in Geneva.
These developments have significantly improved market sentiment and boosted risk appetite, creating a favorable environment for crypto assets like Bitcoin and Ethereum. On May 8, Bitcoin broke above the $100,000 psychological barrier for the first time since February.
Analysts note that this milestone reflects renewed investor demand for risk assets. At the same time, U.S. equity markets have also rebounded from their April lows, highlighting a broader return of risk-on sentiment.
Nexo co-founder Antoni Trenchev remarked:
“Bitcoin’s move on Thursday not only marked its first return to $100K in three months but also reinforced its role as the ultimate rebound asset. The improving U.S. trade outlook has clearly lifted market mood.”
Trenchev added that Bitcoin has been supported by expectations of a more crypto-friendly stance under a potential Trump administration, as well as continued inflows into spot ETFs. He emphasized that growing uncertainty around the dollar’s role as a safe haven may further support Bitcoin’s upward trajectory.
Thomas Perfumo, Chief Economist at Kraken, commented:
“Bitcoin’s return to six-digit territory comes amid a global resurgence in risk appetite. Equity markets are strong, and investors are increasingly willing to allocate to risk assets. That ‘animal spirit’ has clearly spilled into crypto.”
Coinbase Acquires Deribit in $2.9B Deal
Another major development shaking up the crypto world is Coinbase’s $2.9 billion acquisition of Deribit, the world’s largest crypto derivatives exchange.
According to media reports on Thursday, Coinbase has agreed to acquire Deribit in a deal that includes $700 million in cash and the remainder in stock—making it the largest M&A deal in crypto history. Coinbase said the acquisition will accelerate its global derivatives strategy.
This acquisition marks Coinbase’s most ambitious move yet into the lucrative crypto derivatives space. Last year, Deribit’s total trading volume nearly doubled to nearly $1.2 trillion.
Cantor analyst Brett Knoblauch stated:
“This is the largest acquisition in crypto history. We see it as an A+ deal for Coinbase.”
