Ethereum Rockets 20% in Biggest Gain Since 2021 As Pectra Upgrade Boosts Confidence; Is $3K Next?

Ethereum’s Pectra upgrade recently went live without a hitch, and it has seemingly served as rocket fuel for ETH’s price

The world’s second-biggest crypto is up over 20% and surged above $2,400 – marking the biggest gain since 2021 as traders reacted positively to the protocol’s ambitious network upgrade.

Ether Price Finally Breaking Out

While the likes of Bitcoin and Solana have smashed new record highs this year, ETH has been languishing below its current lifetime peak of $4,878 set in November 2021.

But today, Ether is finally showing signs of catching up. The asset is up 20.2% as of press time, changing hands at $2,338.93 after hitting a local high of $2,448 earlier today, according to data from CoinGecko. ETH’s double-digit jump represents its biggest single-day gain since May 2021.

The upsurge follows the successful roll-out of the Pectra upgrade, the Ethereum network’s most significant overhaul since the Merge event in September 2022.

“ETH is finally catching up after lagging behind $BTC for most of the year,” Min Jung, research analyst of Presto Research, observed. The recent Pectra upgrade, according to Jung, has “helped restore some confidence, and with ETH/BTC down nearly 40% year-to-date at 0.02, it’s not surprising to see buyers stepping in at these levels.”

Pectra introduces huge changes to the network, setting the stage for its shift to focus on scaling and enhancing how the network operates across its expanding ecosystem. Specifically, the upgrade consolidates validator operations by increasing the staking limit from 32 to 2,048 ETH and consists of 11 separate Ethereum Improvement Proposals (EIPs).

Looking ahead, the Fusaka hard fork, slated for late 2025, could further boost ETH’s upside potential.

Meanwhile, Ethereum creator Vitalik Buterin is betting that speeding up the Ethereum blockchain and making its infrastructure as simple as Bitcoin in the next five years could propel adoption.

ETH Bulls Target $3,500

Ether’s recent rally coincides with Bitcoin spiking 3% over the same timeframe, to retake the $103,000 price level amid renewed trade talks scheduled to happen in Switzerland between U.S. Treasury Secretary Scott Bessent and Chinese officials. Moreover, President Donald Trump signed a trade deal with UK Prime Minister Keir Starmer on May 8, signaling that global trade war tensions may be starting to ease

As ZyCrypto reported earlier, British multinational bank Standard Chartered said in a recent report that its Q2 target of $120,000 BTC might be “too low.”

As for Ether, widely-followed crypto analyst Crypto Claws said in a recent post on the X social media platform that the ETH/USD pair was “primed for a bullish reversal.” The analyst has set the upside target for the asset between $2,500 and $3,500.

$ETHUSD 1D chart looking primed for a massive bullish reversal! Potential short-term dip to $1450, but that’s just fuel for the next leg up. Targets: $2500, then $3500! Get ready for a significant price surge! #Ethereum #Bullrun2025 #Crypto pic.twitter.com/MXLBOIRmYF

— Crypto Claws (@cryptoclaws_) May 7, 2025