Ethereum is entering a decisive phase in its bull cycle, pushing into fresh highs after finally breaking above its 2021 all-time high of $4,860. The move comes as bulls regained full control of the market following a remarkable 14% surge on Friday, marking one of the strongest single-day performances of the year.

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The rally was ignited by remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. In his speech, Powell hinted at a potential easing of US monetary policy, stating that restrictive conditions may no longer be appropriate as risks shift. The market reaction was immediate: within minutes, both equities and cryptocurrencies spiked sharply, with Ethereum leading the charge in the altcoin sector.

At the same time, derivatives market data confirms the intensity of the move. Open Interest (OI) surged aggressively as traders piled into leveraged positions, reflecting renewed speculative appetite. The sudden influx of liquidity added fuel to Ethereum’s rally, pushing price momentum beyond its multi-year resistance level.

With ETH now in uncharted territory, analysts see potential for continuation as long as OI expansion does not overheat into excessive leverage. The coming weeks will determine whether this breakout sustains or turns into another volatile correction.

Ethereum Derivatives Signal Historic Momentum

Ethereum’s breakout into new highs is being reinforced by extraordinary action in the derivatives market. According to top analyst Maartunn, at least $3.18 billion in new positions have entered Ethereum derivatives within just 24 hours, pushing Open Interest (OI) up nearly 10%. He described this as “insane stuff,” highlighting the scale and speed at which traders are positioning for the next move.

This surge in OI indicates aggressive speculation, with investors betting on Ethereum’s momentum continuing after breaching its 2021 all-time high. While higher OI often fuels rallies by injecting liquidity, it can also create sharp volatility if leveraged positions unwind. Still, the magnitude of the inflows reflects growing conviction in ETH’s upside potential.

At the same time, Ethereum’s Taker Buy Volume (hourly) has reached a multi-month high of $5.76 billion. This metric, which captures aggressive market buy orders, shows that demand is not just speculative but also immediate. Such strong taker-side activity often coincides with breakout phases, when bulls dominate both spot and derivatives markets.

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Price Surges To Retest New Highs

The 4-hour ETH chart shows Ethereum exploding higher, pushing above $4,800 after a sharp breakout from recent consolidation. This surge follows a bounce near the 100-period SMA (green line around $4,298), where bulls defended support aggressively before sending the price into a vertical move.

Ethereum is now retesting its previous all-time high region around $4,860, with momentum signaling strong buying pressure. The 50-period SMA (blue line) is turning upward again, confirming a short-term bullish structure. Meanwhile, the 200-period SMA (red line around $3,994) remains comfortably below the price, showing the broader uptrend is intact.

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This rally also broke through a series of lower highs formed during the recent pullback, suggesting that bearish control has faded. Volume spikes during the breakout add confidence to the strength of this move. If bulls sustain momentum, Ethereum could enter price discovery, targeting the $5,000 psychological level.

However, if rejection occurs at $4,860, ETH may retest the $4,400–$4,500 support zone, where the moving averages converge. The chart highlights a critical phase: Ethereum either continues its breakout toward new highs or consolidates before another attempt. Bulls clearly hold the upper hand after this explosive breakout.

Featured image from Dall-E, chart from TradingView

• 24-hour trading volume spikes to $1.63 billion.
• One transaction moved 90M PI tokens.
• Core Team announcement expected on May 14.

Pi Network (PI) has lost a quarter of its value in a single day, retreating from highs of $1.40 to around $1.10 after a fresh 8 million PI tokens were unlocked into circulation.

The token’s drop, which reversed a 100% rally just hours earlier, has placed renewed focus on its volatile trading activity and the upcoming 13 million token unlock scheduled for May 15 — a supply event that could add further downside pressure.

The abrupt decline began shortly after a week of intense trading interest.

On some exchanges, PI rose from around $0.70 to $1.29 and briefly peaked at $1.40 before retracing.

Source: CoinMarketCap

The surge saw a 24-hour trading volume of roughly $1.63 billion, propelled by significant on-chain activity.

One transaction alone involved 90 million PI tokens, indicating the growing influence of whale trades on short-term market direction.

Token unlock triggers sell-off

The May 11 sell-off coincided with the scheduled release of 8 million previously locked tokens, adding fresh supply into the market.

While token unlocks are routine for most crypto projects, the scale of this release triggered an immediate reaction from traders who rushed to offload positions in anticipation of dilution.

Pi Network’s upcoming May 15 unlock could introduce an even greater 13 million PI tokens to exchanges.

This has raised concerns among investors about whether the platform’s demand-side fundamentals can absorb such increases in circulating supply without further price erosion.

Some analysts note that unless the Pi Core Team makes a significant announcement before or during the May 15 unlock, PI’s price could test support zones near $0.80 or even $0.60.

The possibility of a cascade sell-off has grown more likely in the absence of new utility updates or listings.

Rumours and upcoming update

Despite the steep correction, community speculation remains active around a potential listing of PI on centralised exchanges.

Over the past week, rumours surfaced about an imminent Binance listing, which contributed to the surge in both price and volume. These rumours remain unverified at the time of writing.

Adding to the speculation is an expected statement from the Pi Core Team scheduled for May 14.

Details about the nature of this update have not been disclosed, but the timing — just one day before the next major token unlock — has led to expectations of either a product rollout, exchange partnership, or mainnet progress report.

Many in the community consider the upcoming announcement as a make-or-break moment.

If the developers fail to meet expectations, sentiment could sour further, increasing the likelihood of sustained price weakness through the second half of May.

Volatility highlights price discovery

While Pi Network’s volatility has unsettled some traders, others argue that PI is still undergoing price discovery — a common phase in the lifecycle of emerging crypto assets.

During this period, large fluctuations are not unusual as the market searches for fair value based on supply, demand, and speculative interest.

Since trading began on centralised platforms in December 2023, PI has lacked a fully defined value range due to restricted withdrawals and limited exchange support.

As these constraints gradually lift and token unlocks proceed, the asset’s price is expected to stabilise, though near-term movements are likely to remain headline-driven.

That said, the upcoming 13 million token release will be a key test for Pi Network’s resilience. If the project can pair this with a tangible update or exchange news, it could prevent further decline.

But in the absence of such developments, traders may see deeper retracements before a new support floor is established.