Ethereum rocked the market this week with a strong 22% price spike, as it increased from $1,970 to $1,970 in only one day, after its much-anticipated “Pectra” mainnet upgrade was launched live on May 7. The increase in price is one of the best ever daily moves of ETH in years and has reinvigorated speculation that altseason may be underway. Amid a flurry of activity to reprice Ethereum’s future value, on-chain activity and volumes are starting to heat up across multiple domains.
A Rare Price Rally in Ethereum’s History
Such huge one-day rallies are very rare in Ethereum’s history. The last comparable movements were 26% up in January 2021 during the DeFi boom and 32% up in December 2017, at the peak of the previous bull cycle. The fact that May 2025 is now to be included in that shortlist says many volumes about market confidence and the perceived value of this latest protocol upgrade.
What Is the Pectra Upgrade?
The Pectra upgrade is a consolidated release of a number of great Ethereum Improvement Proposals (EIPs) that increase scalability, remove validator friction, and enhance user experience on the network. That is, it seeks to make the Ethereum ecosystem a stronger ecosystem for both developers and end users by improving how rollups interact with the base layer, improving staking efficiency, and preparing the way for future developments such as sharding.
These improvements are not superficial. They are effective gas-fee savers, smooth out validator rewards, and help to scale the layer-2 adoption, all of which underpin Ethereum’s status as the number one smart contract network.
Market Sentiment Flips Positive
There is a revival of energy in the larger crypto marketplace. Now the Fear and Greed Index is 70, which is reflecting growing bullish sentiment. The Altseason Index, on the other hand, is at 38, which means that while ETH is leading the rally, other altcoins have not yet caught fire.
This dynamism generates a moment of expectation. Historically, intense ETH rallies have usually signaled the beginning of a broader altcoin surge. If the trend continues, we might witness capital moving into mid- and small-cap projects in the next few weeks.
Is Altseason Back?
Ethereum’s rally recently was not just a price move; it was a sign of increasing structural strength in the network. It could be the beginning of altseason as a combination of successful upgrades, renewed investor confidence, and on-chain accumulation.
Whether you’re a long holder or an active trader, this is a time to keep a close eye. If the fundamentals and sentiment align, the market might be poised for a significant upward surge.
