Ethereum saw a massive double digit increase, up 18% since the launch of its most recent hard fork, Pectra, went active on Tuesday. With this leap, Tuesday became Ethereum’s biggest single-day price increase since early May 2021, bringing ETH over the $2,200 threshold. The Pectra upgrade is the biggest change to the Ethereum network since the 2022 Merge.

Learn more about the array of improvements that the Pectra upgrade makes to the Ethereum network. These include improved staking efficiency, streamlined validator operations, and enhanced scalability solutions for Layer 2 networks, which aim to make Ethereum transactions faster and cheaper.

The market responded positively to the upgrade. Now, investors are beginning to recognize the value of these innovations.

"The recent Pectra upgrade has regained confidence in Ethereum." - Min Jung, research analyst at Presto Research

Ethereum’s price has had a tough time compared to Bitcoin this year. The ETH/BTC ratio is down nearly 40%.

The surge in Ethereum’s price cannot be entirely credited to the Pectra upgrade alone. Positive macroeconomic developments — compounded by resumed U.S.-China trade negotiations — have fueled positive investor sentiment especially across the growing cryptocurrency market. For these reasons, many investors view both crypto and Ethereum specifically as a hedge against market volatility. This misconception further increases the attractiveness of Ether.

This surge in Ethereum’s price is indicative of a recent change in investor sentiment favoring altcoins. Investors are increasingly finding value in cryptocurrencies beyond Bitcoin.