Ethereum’s Pectra Upgrade Ignites Network Surge—$2K ETH Now in Sight
Ethereum’s latest Pectra upgrade isn’t just another protocol tweak—it’s a defibrillator for network activity. On-chain metrics spike as developers scramble to leverage new features, while traders pile in like it’s 2021 all over again.
The real kicker? ETH’s price action. After months of sideways boredom, the king of altcoins is finally shaking off the dust—flirting with $2,000 as liquidity floods back in. Wall Street analysts, meanwhile, are still trying to explain how they missed the rally (again).
This isn’t just technical momentum—it’s a full-blown sentiment shift. Whether it’s sustainable or another ’buy the rumor, sell the news’ crypto classic remains to be seen. But for now? The smart money’s betting that Ethereum’s infrastructure play might actually justify its valuation. Maybe.
Ethereum Supply Hits 18-Day Low
According to Ultrasoundmoney, ETH’s circulating supply has dropped since Ethereum’s Pectra Upgrade was implemented on Wednesday. As of this writing, it stands at an 18-day low of 120.69 million ETH.
This long-awaited network overhaul, which raises validator limits to 2048 ETH, enables smart wallets and boosts network efficiency, has fueled a spike in network activity, tightening ETH’s supply as user demand climbs.
Glassnode data shows Ethereum’s active address count has climbed to a 30-day high, signaling renewed user engagement. According to the data provider, on May 7, the number of unique addresses active in the network, either as a sender or receiver, totaled 474,044.
When Ethereum’s active address count increases, more unique wallets interact with the network. The surge in user activity signals growing demand and network usage, and it often correlates with higher gas fees and increased ETH burning.
This is because with more users on the network, more transactions FLOW through the network, triggering higher gas fees and accelerating the ETH burn rate. According to Etherscan, ETH’s burn rate is at its highest level since May began.
As more ETH coins are burned, the circulating supply lessens, increasing the upward pressure on the altcoin’s price.
Will It Reclaim $2,000 or Retreat to $1,744?
On the daily chart, ETH trades above the horizontal channel, which kept its price within a range between April 23 and May 7. The altcoin faced resistance at $1,872 during that period and found support at $1,744.
If the breakout continues, ETH could reclaim the psychological $2,000 price zone and continue its rally toward $2,235.
However, a failed retest of this breakout could cause ETH’s price to fall to $1,744. If it fails to hold, the price could drop to $1,564.
