Ethereum Prepares for Pectra Upgrade, Bullish Trends Appear Below $1900

Ethereum is stabilising around $1,800, poised for changes with the Pectra upgrade on May 7, which may enhance its scalability and efficiency. Notable technical signals suggest a potential price rebound, despite mixed sentiment in the derivatives market. Potential breakout levels and historical support trends offer investors key insights into potential price movements ahead.

Ethereum is currently holding firm around the $1,800 mark, but it seems primed for movement—especially with the Pectra upgrade set to launch on May 7. This upgrade, expected to boost scalability and improve user experience, could entice more institutional investors into the fold. Technical analysts suggest that Ethereum might be nearing a turning point, potentially forming a bottom, which could lead to a rise in prices.

The Pectra upgrade, scheduled for May 7, is seen as a possible catalyst to break Ethereum out of its prolonged consolidation period. It focuses on crucial improvements—including enhancing scalability through layer-2 solutions, refining user experience, and making staking more efficient. This update includes 11 Ethereum Improvement Proposals (EIPs) that could significantly impact how Ethereum operates moving forward.

One standout proposal is EIP-7702, which allows standard wallets to function as smart contracts temporarily. This means users will have alternative ways to pay fees with tokens beyond just ETH. This is particularly important for sectors like gaming and mobile applications, where poor user experience has previously limited engagement. Importantly, Ethereum’s core operations remain unchanged as validators will continue to pay fees in ETH itself.

Several of the EIPs target staking improvements that could pique institutional interest. Notably, validators can now stake up to 2.48 ETH compared to 32 ETH previously required. Additionally, the onboarding and exit processes are being simplified. Given recent reports of institutions divesting their ETH holdings, these advancements might reignite interest from institutional players and help maintain a more substantial locked supply of ETH.

Recent trading has shown that Ethereum has remained rather static around $1,800. It’s lagged behind other significant cryptocurrencies lately, but some indicators suggest we might see a shift soon. A noteworthy Dragonfly Doji pattern has formed, reminiscent of the one that appeared before Ethereum’s major rise in 2017. This pattern generally indicates a rejection of dips, hinting at a potential rise in bullish momentum.

Moreover, Ethereum is testing long-term parabolic support. Historically, many upward market movements initiated from similar zones. One analyst pointed out that this support level often signals a reversal of trends; referencing earlier significant jumps in value.

On-chain metrics further support the idea of a forthcoming rebound. The MVRV Z-Score, which can predict market turns, has fallen back into its historical accumulation zone. This suggests that Ethereum might currently be undervalued, making now a ripe opportunity for investors who are paying attention to past patterns before price surges.

Yet, there’s a mixed sentiment in the derivatives market regarding Ethereum’s immediate trajectory. The ETH monthly futures premium, currently below neutral, shows a degree of hesitance among professional traders to invest heavily in leveraged bullish positions. On the flip side, data from the options market indicates that traders are showing growing confidence in Ethereum’s current pricing, with put options reflecting less fear about further declines.

From a technical standpoint, Ethereum is teetering just below the pivotal resistance mark of $1,840. Breaking through this could very well lead to a rise towards $2,000, but if it fails to breach this level, a dip towards $1,760 or even $1,735 could be on the cards.

Looking at the bigger picture, Ethereum faced a tough battle recently — its market cap dipped below the combined value of key competitors like Solana and BNB in April 2025 but has since rebounded to about $217 billion. It’s still grappling with how to beat out rivals in terms of user experience and stablecoin leadership. The Pectra upgrade is aimed at tackling these shortcomings to better position Ethereum against its competitors in the evolving crypto landscape.