40% Surge in Two Weeks as Market Sentiment Improves

Tech

40% Surge in Two Weeks as Market Sentiment Improves

• ETH has surged over 40% in the past two weeks, trading around $2,555
• Staked ETH turned profitable for the first time since March, boosting validator confidence
• Current rally appears to be primarily spot-driven rather than leveraged trading, suggesting a healthier uptrend
• Ethereum maintains its position as the largest on-chain economy with over $213.9 billion in TVL
• ETH broke through the $2,550 level with strong momentum but shows potential overbought conditions

Ethereum has been making significant moves in the crypto market lately, with a surge of over 40% in just two weeks. The second-largest cryptocurrency by market cap is currently trading around $2,555, showing renewed strength after lagging behind other major cryptocurrencies for much of the past year.

The recent rally appears to be driven more by spot market demand rather than leveraged trading, which analysts consider a healthy sign for sustainable growth. According to CryptoQuant analyst ShayanMarkets, ETH funding rates have remained relatively flat despite the price surge.

This is an important indicator because funding rates typically reflect sentiment in the perpetual futures market. Flat funding rates during a rally suggest that the upward price action comes from genuine buying in the spot market rather than speculative leverage.

Such market dynamics make the uptrend less vulnerable to sudden reversals triggered by mass liquidations, which often occur in highly leveraged markets.

Staking Profitability Returns

A key development supporting Ethereums momentum is the return to profitability for ETH stakers. For the first time since March, staked ETH is showing unrealized gains, according to a recent CryptoQuant report.

On May 9, ETH crossed the $2,297 mark, surpassing the realized price and flipping stakers back into profit territory after more than two months of being underwater.

Ethereum Price on CoinGecko

This recovery strengthens Ethereums network stability by reassuring validators and staking participants. The return to profitability for stakers could signal a larger bullish shift across the Ethereum ecosystem.

Ethereum continues to dominate as the largest on-chain economy, with over $213.9 billion in Total Value Locked (TVL) across lending, staking, and other sectors.

This extensive activity demonstrates Ethereums unmatched developer base and DeFi infrastructure, which attracts the highest volume of application deployment and usage.

However, Ethereum‘s dominance isn’t without challenges. Incentives tied to scalability and application success create a real threat of app migration, especially to competing chains.

Ethereums leadership has acknowledged these graduation risks and is reportedly working toward strategies that ensure value retention as applications evolve and expand.

From a technical perspective, ETHs recent breakout pushed it above $2,550, marking a strong bullish continuation. The Relative Strength Index (RSI) was at 80.58, indicating strong momentum but suggesting the asset may be entering overbought territory.

Meanwhile, the Moving Average Convergence Divergence (MACD) showed a widening gap between the MACD and signal lines, a bullish signal reflecting increased buying pressure.

Several analysts remain optimistic about Ethereums future price movement. Crypto analyst Ali Martinez recently remarked that if ETH can decisively break through the $2,380 resistance level, then it could enter a new bull rally.

#Ethereum $ETH moved past resistance. Send it!

— Ali (@ali_charts) May 11, 2025

Martinez emphasized that ETHs new critical support range lies between $2,060 and $2,420, with close to 10 million wallets holding more than 69 million ETH between these levels.

Another analyst, Titan of Crypto, noted that ETH is following a V-shape recovery, comparing BTC and ETH price action and predicting that ETH is likely to follow BTCs trajectory.

While Ethereum remains below its all-time high of $4,878 reached in November 2021, with volume holding steady and sentiment turning optimistic following the staking profit recovery, Ethereums price may test higher resistances in the coming weeks.

However, the current overbought conditions could lead to a brief consolidation before the next leg up in price.