Pectra Update: traders are anticipating a breakthrough Ethereum (ETH)

This week will be especially important for Ethereum ETHUSD, as the Pectra update is set to take place tomorrow, May 7th. Learn how the altcoin’s price may react to it.

Let’s figure out what is happening in the Ethereum marketETHUSD and what to expect from the cryptocurrency price against the backdrop of the upcoming Pectra update.

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Ethereum Pectra Update Scheduled for May 7: What to Expect

The long-awaited Pectra update for Ethereum is set to be released on May 7th, introducing 11 new Ethereum improvement proposals (EIP). EIP-7251 is notable for increasing the staking limit from 32 ETH to 2,048 ETH, simplifying validator operations and enhancing staking efficiency.

The update also includes wallet improvements focused on user convenience, such as simplified recovery and gasless transactions, which may contribute to broader adoption of decentralized applications (dApp). While this may increase demand for ETH in the long term, exchanges may temporarily suspend ETH transfers during deployment, leading to short-term volatility.

Although the update promises significant improvements, it has already faced several delays due to prolonged testing on networks such as Hoodi and Sepolia. A successful deployment could boost confidence and price, but any technical issues could trigger negative reactions in the market.

In which direction will the ETH trend go

The BBTrend indicator for Ethereum is currently at 1.22, indicating a weak bullish trend. Meanwhile, yesterday the BBTrend reached 2.23, showing a stronger momentum. If the indicator values start to increase again, it will signal the strengthening of the upward trend; a decrease in values will indicate the fading of the bullish momentum.

Current BBTrend values may indicate that Ethereum is in the early stages of an upward trend. However, at this moment, the indicator is in a state of uncertainty: a rise above 2.00 or a drop below 1.00 will determine the further direction of the trend.

Meanwhile, the number of Ethereum whales – addresses holding between 1,000 and 10,000 ETH – stands at 5,463. In recent weeks, this number has remained stable, showing no significant growth.

This indicates the relative stability of the ETH trend, as there are neither significant increases nor decreases in the number of whale addresses.

ETH Forecast: Breakthrough or Decline

Since April 21, the price of Ethereum has been fluctuating between resistance at $1,828 and support at $1,749. This range has been maintained for more than two weeks, indicating uncertainty in the market.

On the EMA chart, the bullish sentiment remains: short-term moving averages are above long-term ones. However, their convergence may foreshadow the formation of a “death cross” — a classic bearish pattern.

If the support level of $1,749 is broken, ETH may drop to $1,689. If the downward trend intensifies, then the next targets for the cryptocurrency will be $1,538 and $1,385.

On the other hand, if ETH overcomes the mark of $1,873, it will have a chance to rise to $1,954 and possibly reach $2,104. This will be the first rise above $2,000 since March 27.

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