Ethereum Jumps 15% to $2,070, Outperforming Rivals Following Trade Deal

Ethereum (ETH) saw a 15% surge to $2,070 after the US-UK trade agreement was announced. The positive sentiment has led to increased institutional buying and a notable drop in exchange reserves. Following the Pectra upgrade, ETH now eyes resistance levels between $2,100 and $2,250, supported by growing derivatives market interest, despite indicators showing potential overbought conditions.

Ethereum (ETH) has experienced a noteworthy surge, climbing 15% to $2,070 following the announcement of a trade agreement between the US and UK. This boost has seen ETH regain the crucial $2,000 psychological threshold and, according to various on-chain analyses, shows significant buying pressure which set it apart from many other top cryptocurrencies.

The trade deal, described as “full and comprehensive,” involves a base tariff reduction to 10%, with specific exemptions on aluminium and steel products. President Trump also announced the US is navigating negotiations with multiple nations, creating a positive ripple effect for investor sentiment behind Ethereum. After a tough Q1 marked by hefty tariffs, ETH has been steadily rebounding since late April.

Institutional investors are taking notice; for example, digital asset firm Abraxas Capital acquired nearly 50,000 ETH via major exchanges Binance and Kraken. On-chain alert data from Lookonchain corroborates this trend. Additionally, Ethereum’s exchange reserves have seen a notable decline of 132,000 ETH within the last four days, marking a total dip of 323,000 ETH since the end of April. Such movements typically indicate increasing market demand.

The bullish sentiment also extends to the derivatives market, where open interest (OI), which measures the number of unsettled derivatives contracts, has risen to 12.08 million ETH, equating to about $25.04 billion. This increase indicates that traders are optimistic about Ethereum’s price trajectory. Furthermore, it mirrors Bitcoin’s performance, which recently breached the $100,000 threshold for the first time since early February.

In addition to these market movements, Ethereum has just completed its notable Pectra upgrade, enhancing several features on its main chain. Developers are now focused on the next upgrade, Fusaka, expected before the year concludes. Meanwhile, the Ethereum Foundation announced substantial grants to various projects aimed at bolstering Ethereum infrastructure in areas such as developer experience, community growth, and cryptographic advancements.

From a technical standpoint, in just 24 hours, Ethereum futures saw liquidations totalling $188.04 million. Liquidation figures indicate that roughly $21.29 million was cleared from long positions, while short positions were hit harder at about $166.75 million. There’s talk that if ETH successfully maintains the $2,000 support level, it may target resistance between $2,100 and $2,250, particularly as the 100-day simple moving average (SMA) could come into play.

Currently, both the Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) suggest that ETH might be overbought, indicating a strong short-term bullish momentum but leaving the door open for a potential correction. As always, investors are reminded to conduct thorough research, as markets can be unpredictable, and investing comes with inherent risks.