Ethereum is set for the Pectra Upgrade on May 7, 2025, introducing 11 EIPs, including a major staking cap increase. This could boost ETH demand but may induce short-term market volatility. Meanwhile, ICP and ADA are struggling under bearish pressures, leading to cautious sentiment among traders.
Ethereum (ETH) is headed into a critical week with the Pectra Upgrade arriving on May 7, 2025. This upgrade will roll out 11 new Ethereum Improvement Proposals (EIPs), notably EIP-7251, which sets to enhance the staking cap from 32 ETH to 2048 ETH. The move aims to optimally manage validator operations, and supporters believe it may boost ETH demand over time.
Market actors are preparing for possible short-term chaos as traders anticipate volatility; exchanges could restrict ETH transfers during the upgrade. Such halts can lead to unpredictable price shifts, adding to the existing uncertainty. It’s worth noting that this upgrade was delayed multiple times due to extensive testing on testnets like Hoodi and Sepolia, raising concerns about its effective implementation.
Currently, Ethereum’s BBTrend indicator sits at 1.22, reflecting a modest bullish trend. Just yesterday, it peaked at 2.23, indicating stronger momentum momentarily before backing off. This uptick hints at some positive underlying movements, but doesn’t quite guarantee a breakout. Traders are watching closely to see if the BBTrend can regain its strength, or if the trend might reverse instead.
On the trading front, ETH has been confined within a narrow range between $1,828 resistance and $1,749 support since April 21, 2025. This range-bound movement suggests a general market indecision, as EMA lines still lean bullish but are starting to come together, signalling a potential death cross. Should the key support at $1,749 falter, a slide down to $1,689 may occur, with additional targets of $1,538 and $1,385 looming.
On the optimistic side, if ETH breaks above $1,873 it could push the price towards $1,954, with a chance of reclaiming the $2,000 mark for the first time since March 27, 2025. Meanwhile, there are currently 5,463 Ethereum “whales”—accounts holding between 1,000 and 10,000 ETH. This statistic has shown ups and downs lately; whale activity is a crucial on-chain metric that can sway market price via accumulation or distribution.
If whale numbers remain stable or increase, it hints at larger holders feeling confident, which might buoy ETH prices in the coming weeks. But a dribble in whale count could signify hesitance, potentially putting the brakes on any upward movement.
Looking at the wider crypto scene, other assets are showing mixed signals. Specifically, Internet Computer (ICP) saw a remarkable surge, hitting a 600% increase from its all-time low back in November 2023. However, it shifted to a bearish trend in March 2024, and the recent rally appears to be fading, putting ICP at risk of plunging to yet another all-time low.
ICP recently fell below the $7 support threshold, with the nearest support now at $3.20—levels last witnessed back in 2023. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) suggest a bearish outlook continues to dominate the sentiment. Analysts describe the price action as being in the final fifth downward wave that started in December 2024, aiming for a target of around $2.69.
Separately, Cardano (ADA) is grappling with challenges of its own, slipping to $0.6625 following a break of trendline support. ADA has faced hurdles around the $0.70 resistance price point, and its latest dip of 3.3% has added more pressure. The failed pivot at $0.6708 has put it below the 50 EMA ($0.6924) and 200 EMA ($0.6798), forming a bearish outlook for those who trade on technical analysis.
For ADA, immediate resistance is at $0.6708 and $0.6938, while support levels are spotted at $0.6504 and $0.6338. Interestingly, though the price trend looks bearish, a substantial 70% of positions in the derivatives market are long, suggesting optimism remains among traders. A jump above the $0.70 mark could trigger large liquidations, potentially sparking a quick price rise.
As the crypto universe shifts, both traders and investors need to stay alert and conduct comprehensive research. The impending Pectra Upgrade for Ethereum, alongside the fluctuating circumstances for ICP and ADA, highlights the volatile nature of the market. With turbulence expected from the upgrade and bearish pressures on ICP and ADA, the upcoming weeks may be decisively important for these cryptocurrencies.
In summary, Ethereum’s Pectra Upgrade is just around the corner, bringing significant modifications that could impact its demand and pricing. Traders should brace for short-lived volatility, whilst challenges pile up for ICP and ADA as bearish trends suggest caution might be wise for potential investors in these coins.
