- Ethereum’s Pectra upgrade introduces 11 EIPs, focusing on account abstraction and improved staking.
- ETH Spot volume is declining post-correction, potentially signaling reduced selling pressure.
- Technical indicators like MACD and RSI show bullish momentum, but $2,030 remains key resistance.
Ethereum is on the brink of Pectra upgrade (May 7th), its most substantial one since the 2022 Merge, an event many hope could spark a significant price rally for ETH.
With Ethereum’s price currently hovering around $1,826 and showing signs of consolidation after a steep correction, the 20-day EMA at $1,780 has held as support, as per CoinMarketCap data.
Understanding Pectra: A Two-Fold Enhancement
Pectra is a dual-layer upgrade that combines changes to both Ethereum’s consensus and execution layers. It incorporates 11 Ethereum Improvement Proposals (EIPs), with standout features like:
- EIP-7702: Introduces smart contract capabilities to wallets, pushing Ethereum further into account abstraction. This will enable gas payments using tokens other than ETH and improve user-friendly wallet designs.
- EIP-7251: Raises the validator staking cap from 32 ETH to 2,048 ETH, reducing validator node overhead and improving staking efficiency.
After months of delay and multiple testnet bug fixes, Ethereum devs are finally rolling out the upgrade.
Related: Ethereum at Crossroads: Will 0.01941 BTC Be the Key to a Major Breakout?
On-Chain Sentiment: Volume Decline Could Be Bullish
Interestingly, Ethereum spot volume is cooling. While this might seem bearish but in the context of a recent correction, falling volume may be a good sign as lower volume often corresponds with reduced volatility and less panic selling.
If sellers are exhausted and no longer flooding the market with ETH, the stage could be set for a more stable base. While it’s too early to call a bottom, this reduction in volume could indicate that selling pressure is finally waning, noted analyst Darkfost in a post on CryptoQuant’s Quicktake.
Technical Outlook: Insights from Chart Indicators
On the technical side, Ethereum’s current chart setup offers some interesting clues about potential price movements. The RSI (Relative Strength Index) is currently at 56.2 and is neither overbought nor oversold, suggesting room for movement in either direction.
On the other hand, the MACD (Moving Average Convergence Divergence) indicator shows that the MACD line (blue) is above the signal line (orange), and the histogram is positive.
Related: Ethereum (ETH) Price Prediction for May 7: Will Bulls Defend the $1,800 Base?
ETH has rebounded from the $1,600 zone and is now testing resistance at the 1.0 Fib extension (~$1,841). If bulls break this level with conviction, the next targets lie at 1.618 Fib ($2,030), a crucial resistance zone.
2.618 ($2,335), 3.618 ($2,641), and 4.236 ($2,829) are also possible targets in a bullish breakout scenario.
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