Ethereum’s recent price surge is driven by a combination of three major forces: macroeconomic catalysts, network-level upgrades, and structural short-term market reactions.
 

US–UK Agreement and Pectra Upgrade Reinforce Market Optimism
 

On May 8, a new trade agreement between the United States and the United Kingdom—followed by the announcement of renewed US–China trade talks—boosted investor confidence across risk markets. ETH responded positively alongside broader crypto assets.
 

On the technical side, Ethereum completed its Pectra upgrade on May 7, introducing:

 - Higher staking limits

 - Account abstraction (EIP-7702)

These improvements increase Ethereum’s accessibility and flexibility, especially for developers and institutions.
 

Since the upgrade, ETH has gained 34.3%, significantly outperforming the overall crypto market’s 10.91% gain in the same period.
 

Meanwhile, Bitcoin broke above the symbolic $100,000 mark but still trailed behind ETH in percentage gains.
 

Short Squeeze and Capital Inflows Accelerate Price Rally
 

ETH’s surge was also fueled by a strong short squeeze in the futures market:
 

 - Between May 8–11, $437.94M in short positions were liquidated, alongside $211.29M in long liquidations.
 

 - As prices climbed, short sellers were forced to buy back ETH, further boosting upward pressure.
 

At the same time, other key market metrics reflected growing bullish sentiment:
 

 - Open interest in Ethereum futures rose from $21.28B to $26.77B
 

 - Funding rates increased from 0.10% to 0.15%, indicating more traders were opening long positions
 

These signals suggest a continued positive bias among derivatives market participants.
 

Whale Accumulation Adds Confidence to the Rally
 

On-chain data shows that Ethereum “mega-whales”—wallets holding over 10,000 ETH—have resumed accumulation since late April.
 

The total ETH held by these addresses has surpassed 40.75 million, reaching the highest level since March 2025, further validating institutional confidence in Ethereum’s upward potential.
 

This round of ETH’s rally reflects a multi-factor structural breakout, driven by external news, internal protocol upgrades, and consistent on-chain behavior. Short-term volatility may follow, but overall momentum remains strong.
 

— AccGn News Team