Ethereum (ETH) is showing resilience above the $1,800 mark as the blockchain gears up for its anticipated Pectra upgrade. With price consolidation and optimism surrounding upcoming technical improvements, analysts and investors are speculating whether a breakout to $2,000 or higher is imminent.
At press time, ETH trades at approximately $1,805. Analysts note that despite market turbulence, ETH continues to find strong support near $1,755–$1,765, with the 200 EMA (Exponential Moving Average) providing a technical floor. A breakout above $1,855 could trigger a move toward the $1,949 level, corresponding to the 78.6% Fibonacci retracement, with potential to test $2,100—the previous local high.
However, the Relative Strength Index (RSI) on the 4-hour chart indicates weakening momentum, as the price struggles within a tight consolidation band.
On-Chain Indicators Suggest Reduced Selling Pressure
On-chain data from IntoTheBlock reveals that resistance exists between $1,805 and $1,857, where 5.85 million ETH is held by 4.48 million addresses. By comparison, the demand zone between $1,748 and $1,800 holds only 2.29 million ETH, suggesting ETH could surge more easily if it breaches current resistance.
CryptoQuant analyst DarkFost notes a decline in Ethereum spot trading volume, interpreting the cool-off as a possible sign of easing selling pressure—although he warns this does not guarantee a market bottom.
What Is the Pectra Upgrade?
Set to go live on May 7 at 3:05 AM PT, Ethereum’s Pectra upgrade includes several major enhancements:
Validator limit increase from 32 ETH to 2,048 ETH, streamlining network validation.
Blob capacity expansion from 3 to 6 per block, improving data availability and lowering Layer 2 transaction costs.
EIP-7702 introduces temporary smart contract functionality to wallets, enhancing wallet flexibility.
These upgrades are expected to increase scalability, staking efficiency, and developer functionality. Layer 2 solutions like Optimism and zkSync may also benefit from cheaper data posting. However, some experts caution that validator consolidation could raise centralization concerns and that EIP-7702’s success hinges on developer adoption.
Coinbase to Temporarily Pause ETH Transactions
Coinbase has announced a temporary suspension of Ethereum deposits and withdrawals to ensure network stability during the upgrade. The pause will begin at 2:50 AM PT and end by 3:45 AM PT on May 7. Staking operations will also be temporarily halted, although existing positions will remain unaffected.
Conclusion
With Ethereum poised for a major technical overhaul and price holding above key support, market watchers are increasingly optimistic. If bullish momentum sustains and on-chain data continues to favor demand, Ethereum could test the $2,000 threshold—and possibly beyond.
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