Ethereum’s native token ETH surged 42% this week to $3,520, marking its most aggressive rally since 2021 as retail traders flooded back into crypto markets. The rebound follows months of stagnation after Ethereum’s Pectra Upgrade failed to ignite price action in April, with on-chain data revealing a stark divide between retail sell-offs and institutional accumulation.
Ethereum’s Contrarian Rally Defies Expectations
Santiment reports that retail investors dumped ETH holdings en masse last week, with exchange outflows hitting a six-month high. Paradoxically, this sell-off created buying opportunities for whales, who absorbed the liquidity to drive prices upward. Ethereum transactions surpassed 1.2 million daily – a 35% spike – while trading volume hit $18.4 billion on May 10 alone.
Key metrics behind the surge:
- Price: $2,300 → $3,520 (7 days)
- Nasdaq correlation: 0.7 (90-day)
- Retail search volume: “Ethereum” +300%
BlackRock’s Crypto Shift Reshapes Sentiment
Asset management giant BlackRock amplified market optimism through COO Robert Mitchnick’s recent comments advocating Ethereum over Bitcoin for certain institutional portfolios. This endorsement coincided with BlackRock filing for an Ethereum-based money market fund, detailed in their SEC submission last Thursday.
Analysts note BlackRock’s Ethereum pivot comes as:
- ETH/BTC ratio rebounds from 0.045 to 0.052
- CBOE’s ETH ETF volume hits $1.2B daily
- Staked ETH reaches 26% of supply
Crypto Rover’s $3M Bet Pays Dividends
Prominent trader Crypto Rover capitalized on the rally through a $3 million ETH position initiated at $2,800. His technical analysis highlighted a descending wedge breakout on May 9, with the subsequent 12% gap fill confirming bullish momentum. The YouTuber’s 160,000 followers received real-time updates through his Cryptosea trading platform.
Market technicians now watch these levels:
- Support: $3,200 (200-day MA)
- Resistance: $3,600 (January high)
- Fibonacci target: $3,850 (1.618 extension)
Remember to track profitable market movements with Coin Push mobile app.
Market Impact: Ethereum’s resurgence has lifted total crypto market cap by $180 billion this week, with altcoins like SOL (+28%) and ADA (+19%) benefiting from renewed risk appetite. Derivatives data shows perpetual funding rates turning positive for the first time since February, suggesting sustained bullish positioning.
