Ether Surges 11.7%, Hitting Three-Week High Amid Market Optimism and Future Network Upgrades

Ether (ETH) saw a significant price surge between September 17 and 19, climbing 11.7% to a three-week high of $2,572. This sharp rise coincided with an overall boost in the cryptocurrency market, which gained 8.3% during the same period. The rally was largely attributed to favorable macroeconomic developments, including an interest rate cut in the U.S. and strong labor market data, which also pushed the S&P 500 to a record high on September 19.

The uptick in ETH prices was paralleled by a notable increase in Ether futures open interest, signaling heightened demand for leveraged trading. On September 19, the total number of open contracts on derivatives exchanges reached 4.66 million ETH, the highest level since January 2023. While this surge suggests growing confidence in Ether’s short-term performance, some traders remain cautious, wary that increased leverage could magnify future price volatility.

The market’s bullish sentiment comes as Ethereum developers prepare for the next major network upgrade, “Pectra.” Due to its complexity, Pectra has been divided into at least two parts, with the first update expected in early 2025. Among the most anticipated changes is the introduction of EIP-7702, which will end the current requirement for users to hold ETH to pay gas fees, instead allowing payment in other cryptocurrencies. Another key improvement, EIP-7251, will enable Ethereum stakers to earn rewards on any amount above 32 ETH, a move that will simplify and enhance the staking process for validators.

These upgrades follow earlier milestones such as the Shapella and Dencun upgrades, which have brought meaningful improvements to both developers and users. While the second part of Pectra won’t launch until at least 2026, it promises further advancements, including the EVM Object Format (EOF) for smart contract security and PeerDAS, a feature that could significantly reduce layer-2 gas fees by increasing the number of “blobs” per block from 6 to 32, making transactions even more cost-effective.

Despite Ether’s recent gains, the market remains cautiously optimistic, as broader macroeconomic uncertainty and fluctuating industrial performances, like FedEx’s 15% stock plunge due to weaker earnings, continue to weigh on investor sentiment.

As Ether approaches these key technological milestones, its price momentum and the strategic upgrades on the horizon are likely to shape both investor confidence and the future utility of the Ethereum network.

Terry Jones
Digital Assets Desk