Ethereum Surges Past $2000 as Smart Money Gains Momentum

Ethereum has demonstrated the strongest weekly performance among the top 10 cryptocurrencies, with its price increasing by 8.5% over the week, surpassing the $2,000 mark.

The recent update implemented on May 7, known as Pectra, is not considered a primary catalyst for the price surge, according to analyst Nikolaj Sondergaard from Nansen, who pointed out the accumulation of «smart money» by institutions like Wintermute. Nansen’s data indicates that the firm accumulated the second-largest cryptocurrency by market cap in order to profit from market-making activities.

Experts at Lookonchain reported that the London-based fund Abraxas Capital withdrew 41,269 ETH (approximately $75 million) from Binance and Kraken.

Additionally, analysts noted that one whale created a new wallet and transferred 8.58 million USDC to Hyperliquid, using 2x leverage to open a long position in Ethereum. The entry price was $1,930.41 per coin, with unrealized profits from the trade reaching $354,000.

Despite this significant increase, Ether is still 59% below its all-time high of $4,878, and the ETH/BTC ratio is nearing five-year lows. According to IntoTheBlock, 65.5 million wallets—nearly half of the network—are at a loss.

Ethereum’s rally coincided with an overall market uptrend, bringing the total market capitalization to $3.2 trillion.

To recall, on the morning of May 8, the price of digital gold surpassed $99,000 following promises from U.S. President Donald Trump to implement «the biggest tax cut» and strike «a major trade deal.»