- Ethereum holds steady above $1,800 as the Pectra upgrade promises major improvements in scalability, staking, and wallet functionality.
- Analysts anticipate a bullish breakout toward $2,000, with potential for further gains if key resistance levels are breached.
Ethereum (ETH) is showing remarkable resilience, trading at $1,805 even as broader market volatility keeps traders on edge. The second-largest cryptocurrency by market cap is consolidating above the critical $1,800 level just days before the highly anticipated Pectra upgrade, slated for May 7.
The Pectra upgrade is poised to deliver significant enhancements to the Ethereum network, including increased validator capacity, cheaper Layer 2 (L2) transaction fees, and temporary smart contract functionality for wallets via EIP-7702. These updates are expected to bolster scalability and user experience, laying the groundwork for Ethereum’s next bullish phase.
Also read: XRP Breakout Imminent? Ripple’s Strategic Q1 Moves Set $3 Target
On-chain analytics indicate Ethereum is in a high-demand zone between $1,754 and $1,765, supported by the 200 EMA line. Short-term indicators, including a potential EMA crossover and consolidation near $1,855, suggest that ETH may be gearing up for a breakout. If the price breaches the $1,855 resistance, bulls could target the $1,949 Fibonacci level, with a possible rally toward the $2,100 mark — the previous swing high.
Meanwhile, analysts like DarkFost are noting a decline in Ethereum spot volume, suggesting an easing of selling pressure. This drop, reflected in CryptoQuant’s bubble map, indicates that ETH could be stabilizing ahead of a potential surge.
However, investors should stay cautious. While the Pectra upgrade offers technical advantages, such as increased blob capacity and validator scaling, it also introduces potential centralization risks and dependency on call data. Adoption of EIP-7702 smart wallets also hinges on developer support.
In preparation for the upgrade, Coinbase has announced a temporary pause on Ethereum deposits and withdrawals from 2:50 a.m. to 3:45 a.m. PT on May 7, underscoring the network-wide impact of this transition.
With bullish momentum building and technical upgrades promising improved scalability, the Ethereum market is closely watching whether the Pectra upgrade will propel ETH beyond the critical $2,000 level — and possibly toward the $10,000 long-term target suggested by some analysts.
