- Ethereum outperforms Bitcoin and Solana, fueled by the Pectra upgrade, ETF speculation, and short liquidations.
- Ethereum” google searches as well as misspelled derivatives such as “Etherium” are skyrocketing, indicating casual investor re-entry.
- Growing open interest, funding rates, and rumors of an ETH staking ETF are catching the attention of both retail and institutional investors.
Ethereum has rallied sharply, rising more than 42% in the last week and outperforming Bitcoin and other leading cryptocurrencies. This explosive move has sparked a surge in retail interest, with analysts pointing to a mix of market events, blockchain upgrades, and ETF speculation as key drivers behind the renewed momentum.
Retail traders, many of whom had retreated amid past scandals and intense market volatility, are now returning, attracted by Ethereum’s impressive price rally and surging trading volumes. Despite this renewed momentum, Ethereum has declined slightly today, currently trading at $2,480.28 a 2.5% dip over the past 24 hours after fluctuating between $2,425.28 and $2,564.29.
Retail Searches Spike Amid Market Turnaround
The uptick in interest from individual investors is evident across digital channels. Google Trends shows that search volumes for Ethereum reached their highest point since February. Notably, even misspelled terms like “etherium” have seen a sharp rise, indicating that casual investors may be re-entering the market. This increase follows months of disinterest, largely triggered by past events such as FTX’s collapse and concerns over memecoin volatility.
According to analyst Kyle Chassé, he pointed out that the increasing number of “Ethereum” searches were rising. Other users also tagged more misspellings, which they regarded as signs of revived retail enthusiasm. The timing coincides with Ethereum’s recent market performance, which has outpaced both Solana’s 22% weekly gain and Bitcoin’s 11% rise.
Liquidations and Market Metrics Reinforce Bullish Setup
Ethereum’s price spike has also triggered substantial short liquidations. In the past week, approximately $305 million in Ether shorts were wiped out. Within just two days, Ether rose 32%, a move largely attributed to the recent Pectra upgrade. This update introduced key improvements in user experience and staking efficiency, which contributed to Ethereum’s market acceleration.
Metrics indicate that leveraged longs are building fast as Open interest has climbed by 40%, while spot volume surged to between $15 billion and $18 billion daily. Meanwhile, funding rates increased from 0.005% to 0.03%, reflecting a clear shift toward bullish sentiment. An additional $85 million in short positions were liquidated, underscoring growing confidence in the rally’s strength.
Institutional Optimism and Blockchain Developments Add Fuel
Institutional perspectives appear to be shifting alongside retail behavior. Ethereum’s potential as a yield-bearing asset gained traction after speculation of an ETH staking ETF from BlackRock. This narrative, combined with macroeconomic tailwinds and Ethereum Layer 2 adoption, is building momentum.
Simultaneously, some internal shifts at the Ethereum Foundation could be driving sentiment. In January, the co-founder Vitalik Buterin announced a leadership reshuffle, that some analysts link to the recent asset’s upswing. As Ethereum remains the central stage for DeFi and stablecoins, such developments draw the attention of capital allocators who earlier failed to enter the market.
