Ethereum Breaks Above $2,500 as BlackRock Files for In-Kind Redemption for ETH ETF – CryptoMode
Ethereum has exploded past $2,500, surging nearly 30% from local lows around $1,800, as the highly anticipated Pectra upgrade successfully deployed on May 7. The move triggered ETH’s largest single-day gain since May 2021, igniting a wave of bullish momentum across the crypto market.
Not just the Pectra upgrade, but a recent filing from BlackRock has pushed ETH to new monthly highs. The asset manager giant filed an S-1 form to modify its Ethereum Trust to allow in-kind redemptions.
NEW: Amended S-1 just dropped for BlackRock’s Ethereum ETF — $ETHA. Looks like the main change is added language around allowing for in-kind creation/redemption when approved by the SEC.
(@EricBalchunas & I expect SEC approval for in-kind at some point this year) pic.twitter.com/HWkTfrDNsJ
— James Seyffart (@JSeyff) May 9, 2025
This would streamline operations for BlackRock and allow investors to enjoy a flexible trading experience. The firm is also looking to add Staking, a crucial component of the Ethereum ecosystem.
Chart Signals Turn Bullish
Ethereum’s chart tells the story. After weeks of consolidation, ETH broke out above its 21-day EMA and point of control at $1,850. Momentum indicators are flashing green: RSI is approaching overbought territory, MACD is accelerating, and weekly price action has crossed the 100-week SMA.
ETH has also cleared the critical $2,200 and $2,300 zones, now eyeing resistance between $2,500 and $2,850. Spot market inflows are driving this breakout. Data from CryptoQuant shows a 180K ETH drop in exchange reserves over the past 48 hours.
Despite ETF outflows in recent weeks, Ethereum’s on-chain data remains strong. Active addresses spiked from 458K to over 560K in 24 hours. ETH’s weighted sentiment index hit 5.2, its highest level since May 2024, signaling a shift in market mood. With transaction volumes surging and validator participation expanding, Ethereum is firing on all cylinders.
Can ETH Reach $3,000?
With the Pectra upgrade now live and ETH firmly above key moving averages, a run toward $3,000 appears increasingly likely. Analysts point to fair value gaps (FVGs) on the hourly chart between $2,200 and $2,300 that could act as support in case of a short-term pullback.
If price holds above these levels and sentiment remains elevated, ETH could revisit the $3,050–$3,100 range—the next psychological and technical barrier.
Macro sentiment also plays a role. Bitcoin recently broke above $100K, reviving altcoin momentum. ETH has underperformed relative to BTC and SOL in recent months, making this rally a potential beginning of capital rotation back into Ethereum.
Ethereum’s breakout past $2,300 is more than just a technical event. It marks a return to narrative dominance, powered by the Pectra upgrade, deflationary tokenomics, and deep institutional alignment.
