Ethereum’s recent price surge has sparked curiosity about its connection to the Pectra upgrade. However, this update is primarily a refinement of the Cancun upgrade, focusing on underlying improvements rather than groundbreaking innovations. 4 Ethereum Improvement Proposals (EIPs) were integrated into the Pectra upgrade aiming to enhance stability and efficiency. These include EIP-7044 for standardizing status expiration, EIP-7524 for redefining fuel limits, EIP-7697 for optimizing transaction pipelines, and EIP-6789 for improving difficulty adjustments. These upgrades address minor issues left behind by the Cancun upgrade. The true driver of this price movement is a recovery from heightened fear, uncertainty, and doubt (FUD). In recent months, Ethereum faced scrutiny related to layer 2 liquidity, Solana’s performance comparisons, unmet expectations for Layer 2 ecosystem applications. Additionally, narratives regarding restaking, modularity, and zk technology failed to resonate with market participants. But this was a period of missed opportunities as DeFi’s total locked value remains at $119 billion, the Cancun upgrade reduced layer 2 costs, ETF inflows are strengthening, and new narratives such as RWA and PayFi are emerging within the Ethereum ecosystem. Institutional investors have recognized this discrepancy between market sentiment and fundamental reality. Abraxas Capital, for instance, recently purchased 242,652 ETH worth $561 million, illustrating a trend of large institutional purchases. Moreover, substantial ETH transfers exceeding $1 million increased significantly, indicating planned accumulation by institutions, signaling renewed confidence in Ethereum’s future.