Ethereum is currently stabilising around $1,800 with minimal fluctuations, preparing for the upcoming Pectra upgrade featuring 11 Ethereum Improvement Proposals. The Pectra upgrade aims to bolster scalability and user experience. Analysts suggest a potential breakout from a downward trend, while on-chain data signals increased accumulation among long-term holders, presenting a more optimistic outlook for ETH. Key resistance and support levels have been identified, with the potential for future price movements hinging on these indicators.
Ethereum’s current trading price hangs around $1,800, showing a lack of movement over the last 24 hours as it grapples with extended downward pressure. Despite being nearly 55% off its December 2024 high of $4,107, analysts see a potential breakout on the horizon. Resistance levels are under scrutiny, set notably at $1,830 and $1,880. Meanwhile, a positive sign emerges from on-chain activities, indicating increased accumulation by long-term holders, hinting at a brighter outlook amidst unrealised losses.
Scheduled for launch this week, the eagerly anticipated Pectra upgrade introduces 11 Ethereum Improvement Proposals (EIPs). These changes aim to significantly improve scalability, enhance user experience, and increase staking efficiency. Noteworthy alterations include EIP-7702, which allows smart contracts to autonomously initiate transactions, effectively enhancing wallet capabilities. Additionally, EIPs addressing staking improvements will raise validator balance caps from 32 ETH to 2,048 ETH, thus attracting institutional stakers. Furthermore, Layer-2 Optimisation will enable L2 rollups to publish more compressed transaction data, resulting in lower operational costs and potentially boosting ETH locked within the ecosystem.
According to analyst Ted Pillows, Ethereum has recently managed to break out of a continuous downtrend, a notable achievement since December 2024. Within the 4-hour chart, there are signs of Ethereum establishing a solid base above key support levels such as the 200-period EMA, which sits at $1,783.99. In the short term, however, selling below $1,800 and the 100-hourly Simple Moving Average casts a somewhat bleak shadow over market movements. Ethereum struggles to clear a negative trend line with resistance marked at $1,830.
Traders should keep an eye on pivotal levels, with resistance resting at $1,830, $1,880, and aiming for $2,000. Meanwhile, support stands at $1,785, $1,750, and $1,720. On-chain analytics paint a rather encouraging picture, showing that accumulation addresses have increased their ETH stacks substantially, jumping from around 15.5656 million to 19.0378 million as of May 3—marking a 22.54% increase since March 10, even as unrealised losses started to appear.
Analyst Decode has created a macro trend oscillator to help identify early signs of a reversal for Ethereum. This tool reveals shallower red bars in the current phase compared to previous downturns. Particularly on the 3-day chart, a rejection from negative territory indicates a possible shift. Historical data suggests that a rapid upward movement typically follows once the oscillator consistently turns green.
Looking ahead, the Pectra upgrade presents a crucial opportunity for Ethereum to reaffirm its dominant position as it approaches its tenth anniversary. A combination of technical breakouts, solid investments from long-term holders, and significant advancements in the network capabilities could fuel future price increases. Investors should focus on that $1,830-$1,880 resistance area in the days to come. A successful break there might signal a jump towards $2,000; however, failing to sustain support at $1,785 could extend the current consolidation phase.
