Ethereum has reclaimed the $2,000 price point after a significant surge. This increase, noted by experts at CryptoQuant, shows ETH to be undervalued compared to Bitcoin. Institutional buying by firms like Abraxas Capital further supports bullish sentiment. While promising, challenges such as weak demand could limit Ethereum’s rebound capabilities. The new Pectra upgrade also signals potential for long-term ecosystem growth, though it isn’t the sole reason for the recent price rise.
Ethereum’s price has recently surged, reclaiming the critical $2,000 mark for the first time since March 2025. Over the last 24 hours, ETH rose by more than 12%, breaking through this resistance level that had kept it under wraps for such an extended period. Currently trading at $2,050.63, that’s up 13.43% from its previous price of $1,788.69. Meanwhile, trading volumes also spiked by 14.35% to $28.01 billion, signalling increased market engagement.
Analysts at CryptoQuant have highlighted that Ethereum appears undervalued when compared to Bitcoin. They stated that Ethereum’s Market Value to Realized Value (MVRV) ratio seems quite cheap relative to BTC. This is the first time since 2019 that ETH has been positioned like this. Previous cycles suggest that when ETH finds itself undervalued like this compared to Bitcoin, price surges tend to follow. A bullish breakout is anticipated soon.
Despite the positive trends, CryptoQuant also raised flags about potential challenges. There’s caution about supply pressure, weak demand, and low transaction volume that could hamper Ethereum’s ability to maintain momentum in its current breakout phase. Investors are urged to remain vigilant, as some of these factors could very well limit ETH’s rebound capabilities.
On a potentially bullish note, institutional activities are suggesting a stronger market sentiment towards ETH. Recent movements noted by Lookonchain show that Abraxas Capital, an investment firm, has made significant purchases of ETH within the last 12 hours. Buying 41,269 ETH from exchanges like Binance and Kraken, valued at about $75.46 million, the firm has moved these assets into a private wallet. This could signal long-term holding intentions, which is a good sign for the market.
This substantial withdrawal reduces liquidity from the exchanges, which can have an effect on market sentiment, and might support further price increases. As Ethereum attempts to maintain its upward trajectory above the $2,000 level, analysts suggest that closing above $2,200 daily could solidify its bullish stance.
Additionally, Ethereum’s recent Pectra upgrade could be instrumental for long-term growth in the ecosystem. This upgrade, merging Prague and Electra, aims to enhance network performance significantly, promising faster and smarter operations. Although the Pectra upgrade adds value to Ethereum’s fundamentals, it shouldn’t be seen as the sole factor driving the price surge. Market dynamics, along with whale accumulation and renewed investor interest, are contributing to the current trend.
