Ethereum’s price is consolidating amid overall market weakness, with the recent Pectra upgrade enhancing transaction capabilities but not boosting its price significantly. Currently caught in a resistance zone, if ETH can break out, a rise past $4,000 is plausible. However, failure to maintain key support could see prices drop closer to $1,000.
As crypto markets continue to stabilize, all eyes are set on the upcoming FOMC meeting. Bitcoin recently saw a notable drop after peaking near $98,000, attempting to break through that price again without success. Meanwhile, Ethereum, the second-largest cryptocurrency, has been stuck within a range since late April, showing a period of consolidation. Despite this sluggish movement, analysts believe that bullish prospects for ETH are still in play.
Ethereum just underwent a significant upgrade, dubbed the Pectra upgrade. This overhaul introduces crucial changes, particularly focusing on transaction efficiency, safety updates, smart wallets, and staking capabilities. A key feature of this upgrade is the ability to carry out multiple actions in a single transaction. Moreover, a new option called Spending Control has set a daily withdrawal limit from wallets, enhancing security and streamlining transactions to be faster and cheaper.
However, Ethereum isn’t performing as well as rivals like Solana and Bitcoin. It’s currently hovering around mid-term lows, even while Bitcoin edges closer to the $100,000 mark. Historically, though, Ethereum has shown a remarkable capacity for recovery from low points, which keeps market sentiment slightly hopeful.
At present, ETH seems to be on the brink of a breakout from its prolonged consolidation phase. The Chaikin Money Flow (CMF) indicator recently dipped below 0—its first occurrence since August 2024—before triggering a rebound that had the price surge over 165%. The token attempted to surpass the $4,000 mark three times but fell short. On a more positive note, a strong MACD signal hints that a bullish turn could be on the horizon, potentially driving the price higher.
Currently, ETH is facing a crucial squeeze in a pivotal resistance zone between $1,819 and $1,975. While bullish traders have managed to keep some momentum, they’ve struggled to initiate a significant upward movement. Should the ETH price break above this range, it could possibly rise to $4,000 or more. Conversely, if the price fails to maintain the established support, it could plummet to around $1,000, presenting a significant potential risk.
