Here is Why Ethereum Surged Yesterday. WIll it Continue?
Ethereum Surges, Hits $2,800 As Whales Accumulation, Upgrade Promises, and $Pepu Memecoin Fuel Much Needed Rally – Is $3,000 Next?
Ethereum, the second largest cryptocurrency by market cap, surged past the $2,800 mark on Monday, reaching a two-week high of $2,850 before retracing slightly.
The rally came amid a run of downturns, all thanks to a mix of speculative trading, promised network upgrades, and whale activity.
Pepu Memecoin Frenzy Inspires Short-Lived Rally
Ethereum’s price jumped 7% on February 17, fueled by a sudden spike in network activity tied to the launch of Pepu Pump Pad, a memecoin launchpad built on an Ethereum layer-2 chain.
Transactions linked to the token dominated Ethereum’s fee market, accounting for over 25% of transaction costs during a three-hour window. At its peak, gas fees skyrocketed from $0.70 to $70 per swap, creating a sudden buzz around the blockchain.
However, the excitement was short-lived as traders realized the surge stemmed from a relatively unknown project rather than organic demand. This caused the pump to fizzle out, leading to ETH losing about $100 within an hour.
The Pectra Upgrade: Ethereum Next Catalyst
Beyond the $Pepu hype, Ethereum’s upcoming Pectra upgrade generates optimism in the cryptocurrency community.
The mainnet, slated for launch on April 8, promises to double layer-2 transaction capacity through increased blob space for rollups, enabling faster and cheaper transactions. Additionally, it plans to introduce “gasless” transactions by allowing third parties to sponsor fees and streamline user interactions by batching approvals for decentralized apps.
Developers emphasize that these enhancements could significantly improve Ethereum’s scalability and user experience. This upgrade comes amid continued criticism of the network’s high gas fees and slow transaction speed.
Testnet activations are scheduled for late February and March, and the upgrade is expected to bridge the gap between them and competing chains like Solana and Hyperliquid.
Whales Optimistic About Ethereum’s Future
Large whales have been accumulating ETH, showing confidence in the coin’s long-term viability. Over the past 72 hours, whales have accumulated approximately 280,000 ETH worth about $764 million. This, in combination with a multi-year drop in exchange reserves, reduces sell pressure and creates scarcity.
Although today’s rally cracked the $2,800 barrier, Ethereum faces hurdles to reclaiming $3,000. Ether is currently trading at $2,744, according to data from CoinMarketCap. For now, whale accumulation predicts increasing bullish sentiments. If Ethereum’s upgrades live up to their promises, then the $3,000 mark could be much closer than it looks.
