Ether (ETH) is poised to mark its most significant weekly gain since May 2021, with a surge of over 37.50% in the week ending May 11, including a 10.30% increase in the last 24 hours. Several factors have contributed to this rally, including Ethereum's Pectra upgrade, mega-whale accumulation, and a major short squeeze.

The positive sentiment for Ether was boosted by the announcement of a new trade agreement between the US and the UK on May 8, followed by the initiation of US-China trade talks. These events have not only impacted Ether but have also uplifted the broader crypto market. Moreover, Ethereum's Pectra upgrade on May 7 brought key improvements such as higher staking limits and account abstraction (EIP-7702), making Ethereum more user-friendly and flexible.

Since May 8, Ether has outperformed the broader crypto market, with a notable 34.3% increase compared to the market's 10.91% rise in total capitalization during the same period. Even Bitcoin (BTC), after surpassing the $100,000 milestone, has trailed behind Ethereum in terms of percentage gains.

Short liquidations in the Ethereum Futures market have also played a crucial role in driving upward momentum. Traders betting against Ethereum have been forced to cover their positions, resulting in $437.94 million in short liquidations since May 8. Simultaneously, $211.29 million in long liquidations have occurred, further pushing the price of Ether upwards.

The surge in prices led to short sellers buying back ETH to cover their losses, intensifying the price increase. Additionally, Ethereum's open interest has seen a significant rise from $21.28 billion on May 8 to $26.77 billion on May 10, indicating increased market participation and new positions being opened.

Moreover, mega-whales, referring to wallets holding over 10,000 ETH, have been accumulating Ether substantially in recent days. The net position change of mega-whales turned positive in late April, with these large entities steadily increasing their ETH holdings. The total supply held by mega-whales has surged to its highest level since March 2025, exceeding 40.75 million ETH. This accumulation by large investors suggests a bullish outlook for Ethereum's price trajectory.

Technically, Ethereum's price has bounced off a long-term ascending support line visible on the monthly chart, forming the lower boundary of a large symmetrical triangle

Source: https://cointelegraph.com/news/why-is-ethereum-eth-price-up-today?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound