Ethereum’s price has rebounded to $1,817 from a previous low of $1,737. The forthcoming Pectra upgrade on May 7 aims to boost scalability, user experience, and staking efficiency. Technical indicators suggest a bullish trend may be underway, with key support levels being tested. Analysts forecast a potential rally above the $2,000 mark if crucial resistance levels hold firm.
In a fluctuating cryptocurrency landscape, Ethereum’s price has bounced back to $1,817 after hitting a low of $1,737 on April 30. This recovery is attributed to the upcoming Pectra upgrade slated for May 7, which analysts believe might ignite a significant bullish rally, potentially pushing the price above the $2,000 mark.
The trading day on April 30 presented notable volatility, with ETH showing early signs of an upward move before creating a pin bar and a subsequent full-body red candle, hinting at a downtrend. At 01:05 UTC, a Death Cross on the moving averages solidified this bearish outlook. Nonetheless, later, ETH found support at $1,790 which helped it move within an upward channel, though it faced resistance at $1,812 before eventually plummeting to $1,737.
Things shifted around 13:50 UTC when an RSI Oversold condition appeared, suggesting a potential reversal. The predicted support at $1,737 set the stage for an upward trend, further validated by a Golden Cross on MACD indicators.
The excitement surrounding the Pectra upgrade cannot be overstated. Set to launch on May 7, the release introduces 11 Ethereum Improvement Proposals (EIPs), targeting improvements in scalability, user experience, and staking efficiency. EIP-7702 is particularly significant as it introduces smart wallet functionalities to externally owned accounts (EOAs), enabling gas sponsorship and batch transactions akin to Paymaster functionality.
Watch team members @Dav1dDuong and @MurrLincoln explain these updates on smart wallet deployment. This upgrade, especially EIP-7702, empowers traditional wallets to temporarily act as smart contracts, allowing users to pay gas fees with tokens other than ETH—thus lowering the entry barriers for non-technical users in sectors like gaming, finance, and mobile applications.
These tweaks will not undermine ETH’s essential role in the network because validators will still need to pay their fees in ETH. Institutional interest is piqued too; validators will have the option to stake up to 2.48 ETH, a stark contrast to the previous 32 ETH cap. This streamlining may reignite institutional engagement, potentially tying more ETH into validator nodes, which could decrease circulating supply.
From a technical standpoint, several signals hint at Ethereum potentially forming a bottom. A monthly Dragonfly Doji candlestick pattern has emerged, echoing formations seen before significant price climbs, notably the staggering 25,000% increase during the 2017 bull market.
This pattern suggests a rejection of lower prices and a possible bullish recovery, as Ethereum also retests its long-term parabolic support zone—historically known to prompt new uptrends. Notably, on-chain data indicates that the MVRV Z-Score—used as a marker for market tops and lows—has returned to its historical accumulation zone. This zone has previously coincided with market bottoms, providing a glimmer of hope for a rally similar to those in late 2018, March 2020, and mid-2022.
Despite some caution among professional traders reflected in derivatives market data, options market trends reveal increased confidence in ETH’s current valuation. The cost of put options shows less apprehension towards downside risk, matching levels typically seen with call options.
Technically, Ethereum could break through the critical $1,840 resistance level, with a successful breakout signalling potential movement towards $1,920 and possibly the coveted $2,000 mark. However, should it fail to exceed $1,840, a pullback to support levels around $1,760 or $1,735 may occur.
As Ethereum leads in total value locked (TVL) with a market cap close to $217 billion, the Pectra upgrade aims to solidify its competitive edge against peers like Solana, BNB, Cardano, and Tron. The current bullish trend sets the stage for either new highs or sharp declines dependant on breaking through key resistance levels.
