- Ethereum surged past $2,000 following the Pectra upgrade, gaining over 20% in a week.
- While short-term momentum is strong, technical indicators suggest the rally may be a temporary relief rather than a full trend reversal.
Ethereum (ETH) surged past the $2,000 mark on May 8, igniting fresh optimism across the crypto market. After weeks of lagging performance, ETH is now one of the top-performing assets of the week, up more than 20% since the beginning of May. The rally follows the successful deployment of Ethereum’s long-awaited Pectra upgrade, which went live on the mainnet just a day earlier.
The key question now: is this explosive move the beginning of a full-blown trend reversal, or just a temporary relief rally in a longer-term downtrend?
A Technical Rebound, Not a Breakout — Yet
Since bottoming out at $1,383 in April, ETH has jumped over 60% and is now testing the critical $2,200 resistance zone. Historically, this level served as a major support, and reclaiming it could mark a major bullish shift. However, the price is currently hovering just below this barrier, suggesting hesitation among traders.
Technical indicators are sending mixed signals. The weekly Relative Strength Index (RSI) remains below 50, and the MACD is yet to cross into bullish territory. This implies that while sentiment is improving, a confirmed uptrend has not yet materialized.
Also read: Bitcoin Surges Past $100K as Binance Buy Pressure Rises and New Whales Accumulate
Wave Count Suggests Short-Term Upside, Long-Term Doubt
Ethereum’s current price movement appears to be part of a corrective relief rally rather than the start of a sustained bull run. Wave analysis indicates ETH could reach as high as $2,700 in the short term before facing a deeper correction. This aligns with the idea that Ethereum is completing a temporary wave A before potentially dropping again.
Moreover, against Bitcoin, ETH is still struggling. Although it rebounded from historical support at ₿0.017, it hasn’t broken out of its long-term descending trend line, and momentum indicators haven’t confirmed a reversal.
The Verdict
Ethereum’s recent rally is promising, especially for short-term traders. But long-term holders should remain cautious. Until ETH breaks decisively above $2,200 and confirms bullish signals on the weekly chart, this run remains a relief rally—not a bull market reboot.
Enjoy the momentum, but keep your eyes on the resistance. Ethereum may not be out of the woods just yet.
