"Historically Undervalued"...Ethereum Soars 25% in a Day

The price of Ethereum, which had been on a downward trend and fell to $1385, is now on the rise. Analysts attribute the price increase to expectations following a major upgrade to the Ethereum blockchain network ecosystem.

According to the global cryptocurrency exchange Binance on the 10th, Ethereum surged about 25% in just one day on the 9th, surpassing $2220. It has returned to the $2200 range for the first time in about two months.

The large-scale upgrade project 'Pectra' on the 7th is considered a key factor in the price rebound. With this upgrade, even if more transactions are conducted on the Ethereum network, processing can proceed smoothly. This is a factor that institutional investors, who value predictability, are likely to view positively.

A significant change is that 'validators', who verify whether transactions have been properly conducted, can now stake up to 2048 Ethereum. Previously, Ethereum validators staked 32 Ethereum as a deposit to receive a reward for verification work at an annual yield of 3-5%. Staking refers to the method of depositing on a blockchain network for a certain period and receiving rewards. Institutions holding large amounts of Ethereum can now stake more with a single account. The industry expects these changes to lower the entry barriers for institutions and optimize compound interest-based rewards.

Cryptocurrency analyst Amir Taha said, "Just before Ethereum's price broke through $1900 on the 9th, about 85,000 Ethereum were withdrawn from Binance," adding, "This is the largest scale in recent months." He also noted, "Along with the large Ethereum withdrawal, $1 billion worth of the stablecoin Tether was newly issued, which is interpreted as institutional buying pressure for Ethereum."

There is also analysis that Ethereum has entered an extremely undervalued zone compared to Bitcoin. Cryptocurrency analysis platform CryptoQuant stated through X, "It's the first time since 2019 that Ethereum has been this undervalued," adding, "Past cases show that after entering such a zone, there was a sharp rise."