Ethereum and Bitcoin are experiencing volatile market conditions. Ethereum seeks a recovery after dipping below $1,800, while its upcoming Pectra update on May 7, 2025, could enhance functionality. Conversely, Bitcoin’s declining Coinbase Premium Index and significant selling pressure highlight a cautious market. Analysts watch critical price levels closely for both cryptocurrencies amidst changing investor sentiments.
The cryptocurrency market is in a state of flux, especially for Ethereum (ETH) and Bitcoin (BTC), which are showing significant signs of volatility. With Bitcoin’s premium index heading into negative figures, it’s clear that U.S. investors are becoming more cautious. Meanwhile, Ethereum is attempting to bounce back after dropping below the critical $1,800 mark.
Ethereum’s recent price movement has caught attention, dipping under $1,800, sparking urgency among traders. Presently, its price has stabilised around $1,832, after hovering above $1,755, establishing a zone of demand that stretches from $1,754 to $1,765. Notably, a 200-day EMA suggests a bullish outlook for the second-largest cryptocurrency by market cap, but external factors such as political announcements and looming Federal Reserve decisions have raised eyebrows. For context, Ethereum once peaked at nearly $4,600 in November 2021.
On-chain analytics have painted a promising picture for Ethereum, hinting at a surge towards $2,000. Data from IntotheBlock identifies key resistance levels between $1,805 and $1,857, where trading volume approaches 5.85 million ETH. Conversely, there’s also a substantial demand corridor from $1,748 to $1,800, which comprises a total of 2.29 million ETH. If Ethereum can breach the supply barrier, it might set itself on a clearer path upwards towards that $2,000 target.
A highly anticipated update, dubbed the Pectra, is set for May 7, 2025, at 18:05 Italian time, aiming to significantly enhance Ethereum’s mainnet functionality. Changes include lifting the validator limit from 32 ETH to 2,048 ETH, along with an increase in blobs per block from 3 to 6, enhancing Layer 2 transaction efficiency. Moreover, EIP-7702 will usher in temporary smart contract capabilities for wallets, expected to make staking faster and cheaper, which could be advantageous for Ethereum users.
With these updates in mind, Coinbase has also announced that they will temporarily pause Ethereum deposits and withdrawals during the Pectra roll-out—scheduled from 17:50 to 18:45 Italian time—to safeguard user assets. However, users’ current staking positions will remain unchanged.
Switching gears to Bitcoin, its market dynamics are shifting under pressure as well. The Coinbase Premium Index recently fell into negative territory for the first time after a 15-day upswing, aligning with Bitcoin’s price dip below $94,000. This drop suggests decreasing buying momentum on Coinbase, which many see as a bellwether for market demand from both retail and institutional investors.
Cointelegraph has reported the emergence of selling pressure: Bitcoin recorded a stark $300 million in negative cumulative spot volume delta (CVD) from April 27 to 29, 2025. Notable selling activity has been noted from Bitfinex whales, and about 8,000 BTC in open interest (OI) has vanished from futures markets, indicating a drop in leveraged positions.
As Bitcoin hovers around $94,000, it sits between two notable CME futures gaps: one from a fortnight ago between $92,000 and $92,500, and another from recent weekend trading between $96,400 and $97,400. Historically, these gaps draw price movements towards them, and some analysts are speculating that Bitcoin may soon test one of these areas, making a pullback to $92,000 increasingly plausible, especially since it’s struggled to maintain above the 200-day simple moving average (SMA).
Traders are keenly eyeing critical levels: resistance sits at $97,000 to $98,000, while support is around $93,000, a cluster of liquidity. Trader UB expressed their strategy, saying, “The key levels are quite clear: $95,500 and $91,900. I won’t trade Bitcoin until it hits one of those points; a rise to $95,500 would signal a long position up to $99,100.”
In summary, the upcoming Pectra update for Ethereum and Bitcoin’s struggle with selling pressures signals pivotal moments for both cryptocurrencies. Ethereum is gearing up for a potential rally towards $2,000, needing to navigate tough resistance levels, while Bitcoin is in a precarious position, confronted with uncertain market dynamics in the face of key support and resistance zones.
