Ethereum Reaches $2,000 Amid 11.65% Climb, Bitcoin On Its Way to $100,000

Key Moments: Ethereum Reaches $2,000 Amid 11.65% Climb, Bitcoin On Its Way to $100,000

Ethereum managed to rise substantially on Thursday, with a major surge of over 11% seeing the coin reach $2,000, outpacing other top-tier altcoins. This latest surge comes amid notable institutional interest that has been observed since April. According to CoinShares, Ethereum has enjoyed back-to-back weeks of positive net inflows into spot Ether exchange-traded funds.

In addition, the implementation of the Pectra upgrade on May 7th is considered to be among the key factors that contributed toward renewed interest in ETH, as it introduced a collection of Ethereum Improvement Proposals (EIPs) focused on scalability and network security. A key change was the hike in the validator maximum stake, which went up from 32 ETH to 2,048 ETH.

The altcoin behemoth's recent gains were part of a broader move higher across crypto assets. On Thursday, the entire crypto market added over 3% in value, reclaiming a total capitalization of around $3.2 trillion. This rally emerged as optimism returned following hopes surrounding Washington-Beijing trade negotiations and rumors of a potential deal between the US and the UK, further boosting risk appetite despite the Federal Reserve maintaining its interest rate stance.

Bitcoin (BTC) was another notable gainer, as renewed investor enthusiasm propelled the price toward the $100,000 level. However, Chief Analyst at Bitget Research Ryan Lee stated that “a clear break above this psychological barrier” might depend on seeing more consistent economic data to support the idea of policy easing.

“A close look at the U.S. economic data will be crucial in the coming weeks to determine the direction of the crypto market. If we see signs of slowing economic growth or sticky inflation, it could put pressure on the Federal Reserve to ease monetary policy, which would likely be bullish for cryptocurrencies,” Lee explained.

According to Senior Director at Wincent Paul Howard, who spoke to The Block, strong news out of the U.S. could be the next driver for the flagship cryptocurrency. “The market now anticipates a potential follow-through later this year, whether in the form of rate cuts or broader macroeconomic stimulus,” he added.