Ethereum (ETH) surged by 15% on Thursday, reclaiming the $2,000 psychological level amid bullish sentiment fueled by the newly announced US-UK trade agreement. On-chain data indicates growing buying pressure, helping ETH outperform other leading cryptocurrencies.
Why Ethereum Is Rising After the US-UK Trade Deal
Ethereum’s notable 15% upswing came after former President Donald Trump announced a comprehensive trade agreement between the United States and the United Kingdom. The deal aims to reduce baseline tariffs to 10% and eliminate duties on aluminum and steel entirely. Trump also highlighted that the US is in advanced talks with several other nations.
This development marks a shift from earlier this year, when global trade tensions contributed to a decline in ETH’s price. Since late April, however, Ethereum has staged a gradual recovery.
Institutional and large-scale investors are showing renewed interest in Ethereum. According to on-chain analytics provider Lookonchain, digital asset firm Abraxas Capital purchased 49,644 ETH through major exchanges like Binance and Kraken.
A clear sign of mounting buying pressure is the decline in Ethereum’s exchange reserves. Over the past four days, 132,000 ETH have been withdrawn from exchanges, with a total of 323,000 ETH removed since April 24. A reduction in exchange reserves typically indicates increased accumulation and reduced selling pressure.
Bullish sentiment is also visible in the derivatives market. Data from Coinglass shows Ethereum’s open interest (OI) has surged to 1.208 million ETH, equivalent to $25.04 billion. Open interest represents the total number of unsettled derivative contracts and often correlates with market momentum.
Ethereum’s upward movement aligns with Bitcoin breaking the $100,000 mark for the first time since February 7. Stock markets also rallied, with the S&P 500 and Nasdaq 100 both gaining over 1% on Thursday. This underscores the growing correlation between crypto markets and traditional financial indicators.
The recovery follows Ethereum’s successful Pectra upgrade, which introduced several new features to the mainnet on Wednesday. Developers are now focused on preparing for the next upgrade, Fusaka, expected by year-end.
In related news, the Ethereum Foundation (EF) announced $32.64 million in grants allocated to various ecosystem projects in Q1 2025. These grants target improvements in core areas such as community education, consensus layer, cryptography, zero-knowledge proofs, developer tools, execution layer, and protocol support.
Ethereum Price Forecast: ETH Eyes $2,100 After Reclaiming $2,000
Coinglass data reveals that $188.04 million in Ethereum futures were liquidated over the past 24 hours. Of these, long positions accounted for $21.29 million, while short positions made up the majority at $166.75 million.
ETH’s nearly 15% surge allowed it to briefly reclaim the $2,000 level. This rebound occurred after bulls defended the $1,800 support level on Wednesday, which was reinforced by the 14-day Exponential Moving Average (EMA) and the 50-day Simple Moving Average (SMA).
If ETH can sustain $2,000 as a support level, it may test the key resistance zone between $2,100 and $2,250, where the 100-day SMA is positioned. A decisive break above this area could signal the beginning of a sustained recovery.
Both the Relative Strength Index (RSI) and Stochastic Oscillator are in overbought territory, reflecting strong bullish momentum. However, these levels also suggest the possibility of a short-term pullback.
👉 Explore real-time market analysis
Frequently Asked Questions
What caused Ethereum’s recent price surge?
Ethereum’s 15% increase was primarily driven by the announcement of a US-UK trade agreement, which reduced trade tensions and improved market sentiment. Increased buying pressure from institutional players also contributed.
How do exchange reserves affect Ethereum’s price?
A decrease in exchange reserves often indicates that investors are moving ETH into long-term storage, reducing immediate selling pressure and signaling accumulation, which can support price increases.
What is the significance of the $2,000 level for ETH?
The $2,000 mark is a psychological barrier and often acts as both support and resistance. Holding above it could pave the way for a test of higher resistance levels near $2,100–$2,250.
What are the next key upgrades for Ethereum?
Following the Pectra upgrade, developers are working on the Fusaka upgrade, expected by the end of the year. These updates aim to enhance scalability, security, and user experience.
How does open interest influence the market?
High open interest in derivatives markets can indicate strong trader interest and momentum, though it may also lead to increased volatility, especially during liquidations.
Is now a good time to invest in Ethereum?
Market conditions are dynamic, and while recent performance is strong, investors should conduct their own research, consider risk tolerance, and consult a financial advisor before making investment decisions.
Disclaimer: This content is for informational purposes only and is not intended as investment advice. The opinions expressed are solely those of the author. Readers should seek independent financial advice before making any investment decisions. Trading leveraged products such as CFDs carries a high level of risk and may not be suitable for all investors.