- Ethereum’s upcoming Pectra upgrade could trigger a major price rally by improving staking and enabling advanced wallet features.
- Technical indicators show bullish momentum, but a breakout above $2,030 is key for further upside.
Ethereum is gearing up for its most significant network upgrade since the 2022 Merge — the Pectra upgrade, scheduled to go live on May 7th. As anticipation builds, traders and analysts alike are eyeing the charts for signs of a potential ETH price rally, driven by both technical momentum and fundamental upgrades.
Pectra introduces 11 Ethereum Improvement Proposals (EIPs), with a strong focus on account abstraction and staking efficiency. Among the standout proposals is EIP-7702, which brings smart contract functionality to wallets, allowing users to pay gas fees in tokens other than ETH. Another major change, EIP-7251, raises the validator staking limit from 32 to 2,048 ETH, which could streamline validator operations and attract larger stakeholders.
Also read: BNB Chain Eyes Dominance as CZ Plans Major Gas Fee Reduction
From a technical perspective, Ethereum is showing promising signs. After a sharp correction, ETH has found support near the 20-day EMA at $1,780 and is currently consolidating around $1,826, according to CoinMarketCap. The RSI sits at 56.2, indicating neutral momentum with room to move higher. Meanwhile, the MACD is flashing bullish, with the MACD line crossing above the signal line and the histogram turning positive.
Chart watchers are particularly focused on the $1,841 resistance level — the 1.0 Fibonacci extension. A clean break above could see ETH aiming for higher targets: $2,030 (1.618 Fib), followed by $2,335 (2.618 Fib) and potentially $2,829 (4.236 Fib) in an extended bullish move.
Interestingly, ETH spot trading volume has been declining post-correction. While often viewed as bearish, in this context it may suggest a cooling of selling pressure, potentially laying the foundation for a more stable rally.
With a powerful upgrade on the horizon and bullish momentum building, Ethereum could be poised for a breakout — but the $2,030 resistance will be the true test for the bulls. Traders should watch closely as the Pectra upgrade unfolds.