News 
February 18, 2025 
4 min. 
Ethereum (ETH) surged to a two-week high of $2,850 on Feb. 17, posting a 7% intraday gain. The rally was triggered by a sharp rise in Ethereum network transaction fees, which jumped from $0.70 to $70 for a single swap. This spike initially fueled investor optimism, but the excitement quickly faded as fees returned to normal levels. ETH lost $100 within an hour, reducing its 24-hour gains to less than 2%.
Memecoin Frenzy Behind the Surge
The sudden spike in transaction activity was linked to the launch of a relatively unknown project. Addresses associated with the “Wall Street Pepe” token were responsible for over 25% of Ethereum’s transaction fees within a three-hour window, according to Etherscan data. The frenzy centered around the launch of “Pepu Pump Pad,” a memecoin launchpad built on an Ethereum layer-2 chain.
Despite the temporary rally, Ether futures markets reflected weak sentiment. The ETH monthly futures basis rate, which measures derivatives traders’ confidence, remained steady at 6% on Feb. 17. Typically, ETH monthly futures trade at a 5% to 10% premium over spot markets. The lack of a sharp increase suggests professional traders were not overly excited about the rally.
Ethereum ETFs Show Low Interest as Retail Traders Remain Cautious
Eastern Europe and the CIS region received a net inflow of approximately USD 2.5 million between Feb. 5 and Feb. 14, while US-based Ethereum ETF’s inflow was USD 2 million. On February 17, CoinGlass tracked Ethereum’s ETFs having executed 84% less volume than Bitcoin ETFs. This shows how indifferent institutional investors were to the price movement.
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Moreover, retail traders did not appear particularly thrilled for the ETH price action either. The perpetual funding rate, which is the cost of maintaining a leveraged position, remained orthopedic. When traders are optimistic, this figure usually exceeds 0.20% over an 8-hour period. However, the lack of anything beyond ordinary enthusiasm on Feb. 17 did provide some signs of optimism for perpetual contracts.
Future Outlook: Ethereum Upgrades and Competition
Though this activity was rather short in duration, Ethereum should take heart from the changes that are in the pipeline. The “Pectra” upgrade, which is keenly awaited, is set to enhance the blob storage limit for rollups, allowing layer 2 transactions to be processed at lower costs and at a faster speed. “Gasless” transactions, which do not need the initiator to spend gas, and are sponsored by third parties, also stand to increase the adoption of cryptocurrencies significantly.
On the other hand, the competition is intensifying in the blockchain world. Some of the most notable independent blockchain projects such as Hyperliquid have shown success, raising the question of whether Ethereum will retain its throne. For Ethereum’s price action, short term volatility continues to hold.
