Ethereum’s price has dropped below $1,800, creating a bearish sentiment as it faces upcoming resistance levels. With the Pectra upgrade set for May 7, which promises validator scaling and reduced Layer 2 fees, analysts are watching closely, especially as Coinbase pauses withdrawals and deposits during the transition. On-chain data presents a mixed picture, hinting at possible future price movements depending on support or resistance breakthrough.
Ethereum (ETH) is currently feeling the heat, having dipped below the $1,800 mark, falling short of significant support levels, including that crucial 100-hour Simple Moving Average. The price has traced below $1,850 and $1,820, indicating a bearish shift that many analysts are watching closely. In fact, ETH’s recent struggles to break past the $1,880 resistance has paved the way for further declines, particularly since it failed to uphold the 50% Fibonacci retracement level from earlier highs.
The bearish atmosphere is further emphasised by the price continuing to linger under the psychological barrier of $1,800, attempting to find a foothold around $1,785. A bearish trend line is forming on the hourly chart, signalling a strong resistance point at $1,830. If, however, ETH can manage to clear that hurdle, it might give way to a rally toward $1,920 or potentially even push past the $2,000 mark.
Yet, on the downside, failure to break that $1,830 resistance could lead ETH to a fresh wave of declines. The immediate support is at the $1,785 level and also touches the 61.8% Fibonacci retracement level within the recent upward movement. If ETH slides below $1,750, speculations suggest it could drop to $1,720, with severe losses dragging it down further to the $1,685 level and maybe touching base at $1,640.
Zooming out a bit, a 4-hour analysis reveals sideways movement, with support holding above $1,755, which seems to be a strong area for buyer interest. This high-demand span – spanning $1,754 to $1,765 – has been crucial for maintaining Ethereum’s upward momentum alongside the 200 EMA line. Still, the current period of sideways trading is significant, where the ceiling sits near $1,855.
The Relative Strength Index (RSI), however, shows a decline in bullish momentum as it struggles to rise above the mid-line. If ETH does break above $1,855, it would likely aim for the 78.60% Fibonacci level close to $1,949, with eyes set on touching $2,100, which previously posed resistance.
Amidst all of this, the Pectra upgrade coming on May 7 could potentially be a game-changer for Ethereum. This will enhance validator scaling, increasing the ETH market cap from 32 to 2,048 ETH, while also hoping to make Layer 2 transactions cheaper by expanding blobs per block from three to six. It’s all aimed at increasing staking yields and better wallet functionality. Though, there are concerns about centralization risks coming from validator consolidation.
In light of this upgrade, Coinbase has announced a temporary halt on ETH deposits and withdrawals from 2:50 am to 3:45 am PT on May 7, intended to protect users during the upgrade transition. Existing staking operations should not be impacted, but new staking will face delays.
On-chain data presents a mixed picture for Ethereum, as reported by IntotheBlock. The first critical supply zone lies between $1,805 and $1,857, housing some 5.85 million ETH across nearly 4.5 million addresses. In contrast, the nearest demand zone, extending from $1,748 to $1,800, retains a smaller 2.29 million ETH volume with fewer addresses.
If Ethereum can surpass this initial supply zone, the road to $2,000 looks clearer with fewer barriers ahead. Currently, spot volume appears to be cooling down, which could indicate a slowdown in negative sentiment. Darkfost, an on-chain analyst, suggests that this cooldown might actually signal a possible bullish comeback. The visualisation of spot volume bubbles shows that as the volume drops, it may be easing volatility and selling pressure.
