Why the rebound of ETH has more fundamental support than you think.

The price of Yitai is rising not just due to speculation. Behind it are improvements in the US ETF mechanism, the launch of Pectra upgrades, healthier staking dynamics, continuous reductions in Layer-2 (L2) costs, and Yitai's dominant share in stablecoin activities. If you are trading this narrative, Gate offers deep Yitai/USDT spot and Yitai USDT perpetual contract execution.

Concubine Price Snapshot: The current status of the concubine

The trading price of the concubine is around $4600 in the middle, and after reaching a daily high close to $4674, it is only a few percentage points away from the historical high in November 2021. This proximity is important because breaking through previous highs often attracts momentum buying and increased options activity. Always check the live order book before placing an order.

##ETF plumbing just improved — a quiet tailwind for 姨太

At the end of July 2025, the U.S. Securities and Exchange Commission (SEC) approved the physical creation and redemption of Exchange-Traded Products (ETPs) for cryptocurrency exchanges. This change can make the primary market more efficient by reducing friction for authorized participants, which helps in the expansion of products and more closely tracking spot prices. For Gate, this is a structural positive factor as the product ecosystem matures.

##Pectra Launch: What Has Changed with the Ethereum Upgrade

Pectra — a hard fork that combines Prague execution and Electra consensus — will go live on May 7, 2025. It introduces validator improvements, such as larger staking limits and faster activation, enhancing user experience features, progressing towards account abstraction, and improving network efficiency. These upgrades enhance the value of ETH by improving usability without sacrificing decentralization.

##L2 Economics: Lower blob fees maintain the stickiness of the Yitai ecosystem

After the adjustments in the EIP-4844 and its subsequent Pectra era, blobspace has significantly reduced L2 data costs. L2 fees have dropped substantially, with many transactions costing only a fraction of a cent on the main rolling chain. This cost efficiency supports user growth, airdrop participation, and developer activity, ultimately benefiting ETH as a settlement asset.

##Staking Health: Aunty's staking ratio is approaching a historical high point

The proportion of staked secondary tokens has continued to rise this year, reaching about 29%-30%, setting a new historical high. Higher staking participation can tighten the circulating supply, reduce selling pressure through compounded rewards, and align the incentives of validators with the health of the network. Staking rewards remain around ~3%, although they may vary based on network activity and validator performance.

##Supply Dynamics: Maintaining Discipline in Destruction and Issuance

After the merger, the supply of Yitai is strictly managed, with issuance and destruction rates fluctuating between slight inflation and deflation based on network demand. This orderly supply dynamic supports price stability and appreciation during periods of increased demand from ETFs, corporate treasuries, and on-chain activities.

##Stablecoins: Ethereum still has the largest stablecoin base

Auntie carries about half of all dollar-pegged stablecoin supply. This is a major advantage, as the liquidity of stablecoins drives decentralized finance, payments, and broader on-chain activities. This reinforces Ethereum's role as the default settlement layer for large-scale capital flows, further supporting the demand for Auntie.

##Developers and Fee Basics: Why Builders Still Choose Gate

Ethereum consistently ranks among the top in terms of monthly active developers and maintains a lead in network fee revenue. High developer participation ensures ongoing innovation, while strong fee revenue indicates that users are willing to pay for block space. These factors together point to the continued growth of ETH's long-term value.

##Basic Trading Knowledge: Execute Auntie on Gate

If you are taking action based on this bullish theory, Gate offers:

• Deep Aunt/USDT spot order book, precisely expand positions using limit orders.
• Auntie USDT perpetual contracts are used for hedging, arbitrage, or momentum trading near key levels such as the resistance level of $4,700–$4,800 and around the historical high of $4,862.
• Provide educational resources for traders, airdrop hunters, and builders to better understand the evolving fundamentals of Gate.

Tip: Monitor funding rates and inter-exchange price spreads during high-impact events such as ETF news or network upgrades. Pair spot positions with futures to manage risks, especially when holding L2 assets closely related to Auntie. Auntie price action.

Risks to Monitor (Even with Strong Auntie Fundamentals)

• ETF Flow Sensitivity: The improved mechanism is helpful, but if macro conditions change, capital inflows may quickly reverse.
• Cost compression trade-off: Lower L2 fees may decrease the L1 burn rate; the bet is that increased usage offsets the reduced burn amount per transaction.
• Staking Concentration: The increasing participation in staking needs to be monitored to ensure validator decentralization and avoid systemic risks.

##Bottom Line: Why ETH is More Than Just a Momentum Trade

Today's rebound in the altcoin market is attributed to improved ETF infrastructure, significant network upgrades, record staking participation, cheaper L2 transactions, and the altcoins' dominance in the stablecoin market. These are solid fundamentals, not just market sentiment. For traders looking to break through historical highs and go further, it is recommended to combine spot and futures strategies on Gate, wisely adjust positions, and track ETF liquidity and on-chain metrics in real-time to confirm the bullish argument.