While the whole crypto market is leaning towards a bearish side, Ethereum (ETH) spiked nearly 4% today, with its price breaking to a multi-month high of $2,772, the level not seen since February. Though the rally was expected by analysts, given that the ETH buyers have been actively looking for major breakouts prior to their jump onto Ethereum’s bullish trend.
After marking a new all-time high on May 22, Bitcoin is currently facing a downtrend, with it declining 3.73% from the high. Usually, Ethereum’s price action follows Bitcoin’s price and rides waves formed after the leading cryptocurrency’s infamous volatility.
But the recent market dynamics have turned the tables as Ethereum is now eyeing to break above $2,800 in a solid push while Bitcoin is downtrading.
At the time of writing, Ethereum is trading near $2,722 with a 24-hour trading volume of $25.92 billion. It has surged by 51% in the past month, in a strong rally accelerating from May 8.
Ethereum Price Chart – Coinmarketcap
Ethereum Price Spikes 51% in 1 Month — Source: CoinMarketCap
Why is Ethereum pumping?
The recent price hikes in Ethereum could be attributed to several factors. One of the key reasons is Ethereum’s price trajectory, which has been through a major downtrend and lag in the past couple of years.
Earlier this year, particularly in January 2025, when leading crypto assets like Bitcoin (BTC) and Solana (SOL) were making news highs, Ethereum was far behind in the race. Given that market players are now seeking underperforming crypto assets, Ethereum stood out among all with a strong potential for 2025.
Another key factor behind Ethereum’s price surge is recent regulatory developments, which have pushed Ethereum as a hub to launch decentralized applications (dApps) and tokens and leverage its infrastructure to build blockchain projects.
The capital rotating from Bitcoin into Ethereum could also be a reason behind spikes in ETH price. It has been historically seen that most investors relocate their profits into undervalued crypto assets, and Ethereum could be at the center this season.