Ethereum currently trades over $1,800, staying buoyed by strong support at $1,755. Analysts point to potential growth past resistance levels, particularly tied to the upcoming Pectra upgrade. Scheduled for May 7, it promises vital enhancements, despite concerns over centralisation risks. Coinbase will temporarily halt ETH transactions during the upgrade window.
Ethereum, currently clipping along above $1,800, is experiencing a surprising calm among the market’s chaos. As of now, it rests at about $1,805, which is a notably strong position considering all the recent selling pressure. This price is supported by a solid foundation at the $1,755 threshold, a zone that’s seen persistent buying activity over the past weeks, creating several bounce backs that help keep the upward trend intact.
Right now, the price seems to be caught in a sideways movement, with $1,855 serving as a critical upper resistance level. Technical indicators show that the 100 and 200 EMA (Exponential Moving Averages) are inching toward a bullish crossover, hinting at potential upward swings. However, there’s a catch — the Relative Strength Index (RSI) indicates a slight loss of momentum amidst this consolidation phase.
Looking at the technical analysis, breaking through the resistance would put Ethereum on course to potentially test the Fibonacci level at around $1,949. If things trend well, reaching $2,100 could be on the table, especially near previous highs. However, if we dip below $1,755, we may be heading for a bumpy ride toward the next support level at $1,676.
The hourly charts are also revealing a slightly bearish vibe, with resistance marking its territory at around $1,830. Further, momentum indicators like MACD have been picking up bearish signals, while the hourly RSI hovers below the neutral mark of 50. On-chain insights from IntotheBlock show that there’s hefty resistance slated up from $1,805 all the way to $1,857, housing over 5.8 million ETH across millions of wallets. This resistance heavily outweighs the nearby demand zones that are significantly smaller.
In a more optimistic yet cautious tone, on-chain analyst DarkFost points to a slowdown in Ethereum’s spot volume as a potential market stabiliser. A declining volume while prices are falling might actually ease volatility, which could indicate less selling pressure, but the analyst remains wary that this doesn’t mean the downward trend has reached its end.
Big changes are on the horizon for Ethereum. The Pectra upgrade, set for May 7, is likely to bring some much-anticipated improvements to the platform. Highlights include validator consolidation, raising the staking cap from 32 ETH to a hefty 2,048 ETH. This could majorly impact staking across the board, transforming the way validators participate.
Not stopping there, the upgrade promises to enhance Layer 2 solutions by doubling the blobs per block, from three to six. Moreover, EIP-7702 is on the way, introducing temporary smart contract functionality, which should make wallets “smarter”. All these adjustments aim to usher in faster staking and cheaper Layer 2 transaction fees, making the offering more attractive for both stakers and dApp developers.
But not everything is set in stone; risks lurk around the corner. This validator consolidation could tilt the balance toward centralisation, a prospect that has some in the crypto space very concerned. There’s also a worry that dApps relying heavily on call data might see transaction costs rise, and successful rollout of EIP-7702 depends significantly on how well developers embrace it.
And here’s an important note for traders: Coinbase will be taking a short break from processing ETH deposits and withdrawals while the upgrade goes through. This pause is set for May 7 from 2:50 am to 3:45 am PT. New staking requests will face a temporary delay, but existing positions will remain unaffected. Overall, much excitement surrounds the Pectra upgrade, yet there’s an air of caution spilling over from both market participants and analysts alike.
