Short-term bullish on ETH

Price dynamic. As of 11.52 a.m. ET, May 8 2025

Yesterday, Ethereum completed a smooth and successful Pectra upgrade, and today the price is moving sharply upward, much better than the overall market and BTC. This looks very promising — Ethereum seems well-positioned for continued growth in the coming days. Let me share my enthusiasm and attract your attention to the current factors.

Here are a few reasons why I believe Ethereum is likely to gain momentum over the next several days:

1. ETH ETF inflows are coming (back). We’ve seen how ETF inflows contributed to Bitcoin’s growth. Even though Ethereum ETF inflows were negative over the days, the price still continued to rise. Given the current price action, I would expect ETH ETF inflows to go positive today and tomorrow, which could drive ETH price growth even further.

ETH ETF net inflow

2. Staking Dynamics and Reduced Supply. Staked ETH has remained stable over the past month, with fluctuations under 0.1%. Pectra enables staking in amounts below 32 ETH, opening the door for smaller holders to put more to their existing stakes. This will decrease circulating supply – a bullish signal.

Staked ETH

3. Positive Hype Around the Pectra Upgrade. There’s good excitement about the Pectra upgrade, which is a good explanation for non-professional investors why ETH is up. While it’s probably impossible to explain to non-developers what is so good about Pectra, the sentiment is clearly optimistic.

4. Strong Fundamentals Remain (tons about it on Reddit). Ethereum continues to lead on key metrics — Gas fees are incredibly low (<1 gwei,- under 10% of Bitcoin’s fees, despite Ethereum’s broader functionality). Real-world asset (RWA) tokenization on Ethereum is booming, with 120% growth in the last 12 months (from $10B to $22B, majority on ETH; Bitcoin doesn't support this function and likely would never support).

5.Positive Global Agenda Drives a Shift Toward Risky Assets. The U.S. just announced a "great" deal with the UK (…you know… now the U.S. will export the healthy beef to the UK). It doesn't sound big per se but usually drives the investments towards riskier assets (ETH + BTC)

Let’s see how the market reacts, but the outlook is definitely encouraging. While I was writing this post, ETH went up by +50 points more.