The Ethereum (ETH) price witnessed a significant surge this past 24 hours, reaching a high of $2,702 and surpassing its all-time high. This rally is attributed to several driving factors within the Ethereum ecosystem. The recent Pectra upgrade has boosted Ethereum’s competitive edge against other layer-one chains like Solana, enhancing scalability and efficiency for institutional investors looking to enter the web3 space. Furthermore, a decrease in U.S. inflation data amidst global trade negotiations has fueled interest in cryptocurrency as a haven asset. The surge in demand from institutional investors for Ether Futures Open Interest (OI) also played a role, reaching $32 billion on Tuesday after an increase of over 12%. A recent short squeeze further contributed to the upward momentum. This trend is particularly notable due to substantial forced liquidations exceeding $145 million. While the market remains bullish and the Ethereum fear and greed index has hit over 75%, investors are optimistic about its potential to reach new highs soon based on technical indicators, including the crossing of the MACD line for the first time in 2023. The strong technical signal is paired with the price regaining support above $2,360 after a notable correction earlier this year.