Ethereum's 20% rise to $2,000 after the Pectra upgrade boosts the crypto market, with Bitcoin crossing $100K - IcoHolder.

The cryptocurrency market is experiencing a significant surge today, with the majority of coins posting impressive gains of up to 20%. The rally is largely attributed to Bitcoin surpassing the $100,000 mark, as well as Ethereum’s recent Pectra upgrade, among other factors.

Ethereum is leading the charge with a remarkable 20% increase, crossing the $2,000 threshold for the first time since 2021. This surge follows the activation of Ethereum’s highly anticipated Pectra upgrade, which went live yesterday. The upgrade, described as the most significant since the 2022 Merge, has introduced several major changes, including an increase in staking limits, enhanced wallet usability with smart contract features, and the implementation of nine additional Ethereum Improvement Proposals (EIPs).

Ethereum’s on-chain metrics also show signs of strength. According to DefiLama, the total value locked (TVL) in Ethereum has risen to $57.9 billion, while its daily transactions grew by 22% over the past month. However, despite these positive indicators, Ethereum’s network activity remains relatively weak, and Ether’s transaction fees have dropped by 95%, signaling that the path to $3,000 might take longer than some traders expect.

Analysts have set their sights on Ethereum’s potential, with predictions suggesting that the cryptocurrency could reach as high as $3,500 in the future. However, it faces a key hurdle at $2,380, a level where it has previously struggled. If Ethereum can break through this resistance, analysts believe it could trigger a new rally.

In addition to Ethereum’s rise, other major cryptocurrencies such as XRP, Solana, Dogecoin, and Cardano have also posted gains of 5-7%. Analyst Michaël van de Poppe pointed out that Ethereum’s recent jump above $2,100, a $300 increase in just one day, is a significant move. The broader crypto market is being propelled by factors such as expanding liquidity, a favorable business cycle, and easing fiscal policies, all of which are expected to fuel Ethereum’s continued growth.