Ethereum rebounds: $3K in sight?

May 08, 2025

Reading time: 5 minutes

Ethereum bulls reawaken as price targets $3K post-Pectra upgrade

Key points:

  • ETH broke its six-month downtrend, eyeing a short-term move to $3,000.

  • TVL rose 41% to $52.8B while daily transactions jumped 22%, boosting bullish sentiment.

  • Pectra’s EIP-7702 rollout accelerates user activity and ETH burn, trimming supply.

News - Ethereum’s native token ETH is showing signs of a breakout, with bullish traders targeting the $3,000 mark. After months in a downtrend, ETH has reclaimed key technical levels, helped by surging network activity and the successful rollout of the Pectra upgrade.

Technical analysts highlight ETH’s move above a descending trendline, with momentum supported by rising indicators like the RSI and a hold above the 50-day SMA. Analysts now eye $2,100–$2,800 as resistance zones before a potential move toward $3,000.

Onchain data backs the bullish narrative. Ethereum’s total value locked (TVL) has surged 41% over the past 30 days to $52.8 billion, while daily transactions rose 22% to 1.34 million. Meanwhile, Ethereum’s circulating supply hit an 18-day low of 120.69 million ETH, driven by increased activity and elevated burn rates following the upgrade.

Onchain signals strength, but risks remain - Despite the bullish momentum, headwinds still exist. A 95% drop in transaction fees this year has slowed down ETH’s burn mechanism, muting its deflationary pressure. At the same time, spot ETH ETFs saw nearly $40 million in outflows this week—suggesting some investors remain cautious.

Whether Ethereum can maintain its upward trajectory may hinge on breaking past the $2,800–$3,000 resistance zone.

Account abstraction ushers in wallet evolution - The Pectra upgrade’s EIP-7702, which lets user accounts temporarily act like smart contracts, is already reshaping Ethereum’s user experience. Wallet providers like Ambire and Trust Wallet rolled out updates that allow users to pay gas fees in stablecoins and bundle multiple actions into one click.

This marks Ethereum’s biggest wallet upgrade since the Merge. Despite minor phishing concerns raised by developers, the improvements promise a more intuitive Web2-like user experience, potentially attracting the next wave of users and DeFi participants.

XRP ignites: Breakout fuels talk of $5 surge

Key points:

  • XRP surged 3% in 24 hours, breaking a key resistance level and signaling a potential bullish trend.

  • Technical indicators like RSI (54.1) and Balance of Power (0.86) show growing buyer dominance.

News - Ripple’s XRP gained over 3% in the past 24 hours, trading around $2.21 at press time. While the price movement appears modest, both technical indicators and macro catalysts suggest a broader rally could be underway.

XRP has broken past a descending resistance line that capped its price since April, indicating a possible trend reversal. The Relative Strength Index (RSI) has climbed above 54, and the Balance of Power sits at 0.86 — both signaling increasing bullish momentum.

Technicals and market signals - Traders are now watching for a clean break above $2.29, which could drive prices toward the $2.50 mark in the short term. If buying pressure continues, analysts like Crypto Claws see the potential for a rally to $3.30 or even $5 — XRP’s historical high and a psychological resistance zone.

The latest surge follows Ripple’s acquisition of prime broker Hidden Road, which could eventually bring $10B+ in daily financial flows to the XRP Ledger. On-chain data further confirms bullish sentiment: XRP has gained 26% since early April, with technical analysts spotting patterns that mirror past parabolic rallies.

Bigger picture: $5 or $27? - Market watchers like Egrag Crypto and Amonyx have pointed to ambitious long-term targets of $13 and even $27 based on Fibonacci extensions and multi-year bullish formations. While such projections are speculative, the current setup shows XRP regaining strength amid broader crypto momentum and dollar weakness.

Still, risks remain. Regulatory uncertainty, inconsistent transaction growth, and technical integration hurdles following the Hidden Road deal could weigh on sentiment.

Coinbase buys Deribit for $2.9B in bid to dominate crypto derivatives

Key points:

  • Coinbase has agreed to acquire Deribit for $2.9 billion, including $700M in cash and 11M Coinbase shares.

  • The deal gives Coinbase a dominant position in the crypto derivatives market, ahead of a U.S. institutional adoption wave.

News - Coinbase, the largest U.S. crypto exchange, has announced a $2.9 billion acquisition of Deribit — the world’s leading crypto options exchange. The deal includes $700 million in cash and 11 million shares of Coinbase Class A common stock, cementing one of the biggest strategic moves in crypto this year.

This acquisition follows a competitive bidding race with Kraken, which ultimately acquired NinjaTrader for $1.5 billion instead. With this move, Coinbase solidifies its derivatives expansion and secures a powerful position in the crypto options market.

Deribit processed $1.2 trillion in trading volume in 2024 — a 95% YoY surge — underscoring the booming demand for digital asset options. Founded in 2016, Deribit has been a dominant force in BTC and ETH options trading, particularly among institutional players.

Strategic expansion amid market shift - According to Coinbase, the acquisition “significantly advances” its derivatives strategy, helping it offer cross-margining across spot, futures, and options — a rare feature in crypto that enhances capital efficiency for institutional clients.

Although Deribit will not serve U.S. customers directly post-acquisition, the move aligns with U.S. presidential frontrunner Donald Trump’s broader vision of making the U.S. the "crypto capital of the world."

Once finalized later this year, Deribit founders John and Marius Jansen will exit the company, closing a decade-long chapter and opening a new one under Coinbase’s leadership.

Coinbase shares (COIN) rose 4% following the announcement, trading near $205 on the Nasdaq.

Superstate brings SEC-registered stocks to Solana, starting with SOL Strategies

Key points:

  • Superstate launched ‘Opening Bell,’ a platform for trading SEC-registered public equities on-chain, starting with Solana.

  • SOL Strategies will be the first to tokenize and list its shares pending regulatory approval.

  • The move marks a key step in bridging traditional finance and DeFi through compliant tokenized equities.

News - Superstate, a blockchain asset management firm founded by Compound’s Robert Leshner, has announced a major expansion into tokenized public equities. Its new platform, Opening Bell, allows SEC-registered shares—not synthetic tokens—to trade directly on public blockchains, with Solana as the launch network.

The platform supports real-time, 24/7 trading and programmable stock issuance—eliminating traditional settlement delays and broker dependencies. Retail and institutional investors alike will be able to trade shares that appear directly in their crypto wallets post-KYC.

Canadian digital asset firm SOL Strategies will be the first company to list shares on the platform. Previously eyeing a Nasdaq listing, the firm now views Superstate’s on-chain model as a pivotal route to tapping crypto-native investors and internet-first capital markets.

Why it matters - This isn’t another tokenized workaround. Superstate has registered as a digital transfer agent with the SEC and aims to operate within the regulatory framework—unlike early blockchain equity attempts by FTX or tZERO.

CEO Leshner said the firm is betting on “a massive wave of capital” from investors who prefer wallets over brokerage accounts. The company already manages over $750M in tokenized funds and counts 150 institutional clients, including BitGo and CoinFund.

While Superstate will debut on Solana due to its speed and scale, it plans to support other chains in future. The SEC is expected to discuss tokenized securities in a roundtable next week, with Superstate's leadership likely participating.

Interesting facts

  • Kraken's Layer-2 blockchain, Ink, built on the Optimism Superchain, went live on mainnet in December 2024, months ahead of its planned early 2025 release. This early launch aims to enhance DeFi accessibility by enabling seamless token transfers and interactions across the Superchain ecosystem. 

  • The U.S. Securities and Exchange Commission (SEC) has designated crypto assets as a top priority in its 2025 examination agenda. The focus includes evaluating broker-dealer practices related to complex and high-risk products, such as cryptocurrencies, to ensure investor protection and compliance with regulatory standards.

  • Bitcoin analyst Willy Woo projects that the global crypto user base could reach 1 billion by the end of 2025, based on an extrapolation of multiple prior studies. While ambitious, this forecast reflects the industry’s fast-growing adoption curve.

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Top 3 coins of the day

Pepe (PEPE)

Key points:

  • At press time, PEPE was trading at $0.00000947 after surging 14.79% over the last 24 hours.

  • MACD showed a fresh bullish crossover while Parabolic SAR confirmed upside momentum.

What you should know:

PEPE rallied sharply on May 8, powered by growing whale accumulation and renewed bullish sentiment in the memecoin space. Whale wallets reportedly withdrew over 500 billion PEPE from Binance this week, a move interpreted as a strong signal of long-term holding interest. This on-chain activity appeared to front-run the sudden surge in price, which also aligned with predictions of a 60% upswing circulating among speculative traders. From a technical perspective, the MACD line flipped above the signal line, marking a fresh bullish crossover that reinforced the breakout. Additionally, the Parabolic SAR dots flipped below the candlesticks, confirming a momentum shift in favor of the bulls. Volume spiked notably during the rally, reflecting strong market participation behind the move. If momentum persists, PEPE could challenge the $0.00001050–$0.00001100 resistance zone next. However, any failure to maintain above $0.00000870 could trigger a short-term pullback.

Solana (SOL)

Key points:

  • At press time, SOL was trading at $154 after gaining 4.97% over the last 24 hours.

  • Parabolic SAR supported a continued uptrend, while the RSI climbed to 64.35, nearing overbought territory.

What you should know:

Solana posted a strong daily gain, fueled by a mix of institutional accumulation and broader altcoin bullishness. SOL Strategies recently acquired $18 million worth of SOL as part of a larger $500 million note deal, boosting confidence in the token’s medium-term potential. Market optimism has also been bolstered by bullish chart patterns forming amid a backdrop of growing adoption narratives and increasing investor attention. Technically, the Parabolic SAR confirmed bullish strength as its dots remained well below the candlesticks. Meanwhile, the Relative Strength Index (RSI) rose to 64.35, showing growing bullish momentum while still shy of the overbought zone. Volume also remained healthy, further validating the price climb. If momentum persists, SOL could challenge the $160–$165 resistance zone. On the downside, any rejection could see a pullback toward the $145 support region.

XRP (XRP)

Key points:

  • At press time, XRP was trading at $2.20 after a 3.89% daily increase, attempting a breakout above its mid-Bollinger Band level.

  • MACD showed a narrowing bearish spread, hinting at a potential bullish crossover.

What you should know:

XRP saw a modest uptick amid renewed optimism in the community regarding a potential SEC appeal withdrawal and bullish long-term forecasts targeting the $5 mark. The asset’s price action has been supported by growing attention on new payment protocols tied to the XRP Ledger, along with broader sentiment surrounding Ripple’s regulatory clarity prospects. Technically, XRP closed just above the midline of the Bollinger Bands, signaling possible entry into a recovery channel. The bands remained relatively tight, suggesting that a breakout move could follow if volume expands. Meanwhile, the MACD histogram showed declining bearish momentum, with the MACD and signal lines approaching convergence—a setup that may precede bullish continuation. If confirmed, XRP could aim for the $2.35–$2.45 range in the short term. However, failure to sustain above $2.15 may invalidate this move and trigger a drop toward $2.00 support.

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