Ethereum (ETH) continues to show resilience, trading just above $1,800 despite ongoing market volatility. As the highly anticipated Pectra upgrade approaches, investor sentiment is leaning bullish, raising the question: could this be the start of Ethereum’s next major breakout?
Price Consolidation Signals Strength
On the 4-hour chart, Ethereum is holding firm above $1,755—a region identified as a significant demand zone. This horizontal movement between $1,754 and $1,765 has served as reliable support, repelling multiple downward attempts.
Adding to the technical optimism, the 100 and 200 exponential moving averages (EMA) are nearing a bullish crossover. However, the Relative Strength Index (RSI) is still hovering below the critical 50 mark, indicating momentum is building but not yet explosive.
From a Fibonacci perspective, a successful breakout above $1,855 could pave the way for a move toward $1,949, the 78.6% retracement level. If bullish momentum accelerates, Ethereum may retest its local high around $2,100. On the downside, a failure to maintain support could drag ETH back toward the $1,676 level.
On-Chain Metrics Highlight Strategic Accumulation
According to data from IntoTheBlock, the $1,805–$1,857 range is a major resistance zone, with approximately 4.48 million addresses holding 5.85 million ETH in that band. Conversely, the support range between $1,748 and $1,800 is relatively thin, hosting only 2.29 million ETH across 3.46 million addresses.
This disparity suggests that if ETH breaks above the $1,857 threshold, the path toward $2,000 could see reduced selling pressure—an encouraging sign for bulls watching market liquidity zones.
Decreasing Spot Volume May Signal Exhausted Selling Pressure
On-chain analyst DarkFost recently noted that Ethereum’s spot trading volume is on the decline. This development, visualized in CryptoQuant’s volume bubble map, reflects falling sell-side activity as the price stabilizes. While reduced volume often precedes volatility, it can also hint at market participants preparing for a new trend, rather than exiting positions.
Still, the analyst warns that a volume drop alone does not confirm a market bottom. Caution remains essential as speculative behavior around network upgrades often leads to exaggerated price moves.
What’s Coming with the Pectra Upgrade?
Set to go live on May 7 at 03:05 PT, the Pectra upgrade is one of the most technically significant changes to the Ethereum network in recent months. Here’s what’s included:
Validator Consolidation: Increases the maximum stake per validator from 32 ETH to 2048 ETH, aiming to reduce overhead—but raising centralization concerns.
Increased Blob Capacity: Blob transactions per block double from 3 to 6, significantly improving data throughput and lowering Layer-2 transaction fees.
EIP-7702 Implementation: Adds temporary smart contract capabilities to externally owned wallets, enhancing wallet flexibility and programmability.
Enhanced Gas Sponsorships: Decentralized applications (dApps) can now more easily sponsor user gas fees, creating smoother onboarding experiences.
These upgrades collectively aim to improve scalability, user experience, and staking incentives, but they also introduce new challenges. The validator threshold change, for instance, could lead to validator centralization, while EIP-7702’s success hinges on developer adoption.
Coinbase to Temporarily Halt ETH Services During the Upgrade
Due to the upcoming hard fork, Coinbase has announced it will suspend ETH deposits, withdrawals, and new staking requests between 02:50 and 03:45 PT on May 7. Current staking positions will remain unaffected, but users are advised to complete any time-sensitive transactions before the scheduled downtime.
Conclusion: Is a Bull Market on the Horizon?
Ethereum’s current position above $1,800, combined with bullish technical patterns and on-chain activity, paints a compelling picture. If the Pectra upgrade delivers on its promises without introducing new vulnerabilities, Ethereum may be primed for a surge beyond the $2,000 resistance.
That said, as with all network upgrades and speculative events in crypto, caution and proper risk management are crucial. Readers are reminded that market conditions can shift quickly, and professional financial advice should always be sought before making investment decisions.
The Bit Journal will continue to monitor the market closely as the Pectra upgrade rolls out.
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Sources:
IntoTheBlock Analytics – intotheblock.com
CryptoQuant – cryptoquant.com
Ethereum Foundation Blog – blog.ethereum.org
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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