Ethereum (ETH) is entering a pivotal week as it gears up for its much-anticipated Pectra Upgrade, set to launch on May 7, 2025. This upgrade is expected to introduce 11 new Ethereum Improvement Proposals (EIPs), including the notable EIP-7251, which aims to raise the staking cap from 32 ETH to 2048 ETH. This change is designed to streamline validator operations and enhance staking efficiency, potentially driving greater demand for ETH in the long run.
As the upgrade approaches, traders and investors are bracing for short-term volatility, particularly as exchanges may temporarily halt ETH transfers during the deployment. This could lead to significant price fluctuations, compounding the uncertainty in the market. The Pectra Upgrade has already experienced multiple delays due to extended testing on networks like Hoodi and Sepolia, raising concerns about its rollout.
Currently, Ethereum's BBTrend indicator stands at 1.22, indicating a mild bullish bias. The BBTrend reached a high of 2.23 over the past day, suggesting stronger momentum before retreating slightly. While this current reading signals a positive trend, it is not robust enough to confirm a breakout. Traders are keenly observing whether the BBTrend can regain strength or if the momentum will fade, which could lead to a reversal.
In terms of market dynamics, Ethereum's price has been trading within a tight range between $1,828 resistance and $1,749 support since April 21, 2025. This stagnation reflects a broader market indecision, with the EMA lines remaining bullish but beginning to converge, hinting at a potential death cross. If the support at $1,749 fails, ETH could plummet to $1,689, with further targets at $1,538 and $1,385 coming into play. Conversely, a breakout above $1,873 could propel ETH to $1,954 and potentially reclaim the $2,000 mark for the first time since March 27, 2025.
Adding to the complexity, the number of Ethereum whales—addresses holding between 1,000 and 10,000 ETH—currently stands at 5,463. This figure has fluctuated in recent weeks, and whale activity is a key on-chain signal, often influencing price movements through accumulation or distribution. A steady or rising whale count typically indicates confidence among larger holders, which could provide support for ETH's price in the upcoming weeks. However, a continued decline in whale numbers may reflect hesitation among larger investors, potentially capping upside momentum.
In a broader context, the cryptocurrency market is witnessing varied trends across different assets. For instance, Internet Computer (ICP) has experienced a dramatic rally, increasing by 600% after hitting an all-time low in November 2023. However, the trend turned bearish in March 2024, and with the latest rally faltering, ICP risks falling to a new all-time low. Analysts are closely monitoring the charts, noting that ICP has broken down from a long-term ascending support trend line, confirming its bearish trajectory.
The price of ICP fell below the $7 horizontal support area, with the next closest support level at $3.20, a threshold not seen since 2023. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are also pointing to a bearish outlook, reinforcing the notion that new lows for ICP are likely. According to wave count analysis, the price is currently in the fifth and final wave of a downward movement that began in December 2024, with a target of $2.69 for the end of this wave.
Meanwhile, Cardano (ADA) is facing its own challenges, slipping to $0.6625 after breaking trendline support. ADA has struggled with resistance around the $0.70 mark, and its recent decline of 3.3% has put additional pressure on its price. The pivot at $0.6708 failed to hold, and ADA is now trading below both the 50 EMA ($0.6924) and 200 EMA ($0.6798), indicating a bearish setup for technical traders.
Immediate resistance for ADA is positioned at $0.6708 and $0.6938, while support levels sit at $0.6504 and $0.6338. Despite this bearish trend, the derivatives market remains bullish, with around 70% of ADA positions being long, according to Coinglass data. This high long interest suggests that traders are still optimistic about ADA's potential recovery. A move above $0.70 could trigger significant liquidations, potentially fueling a rapid price increase.
As the cryptocurrency landscape evolves, traders and investors are advised to remain vigilant and conduct thorough research. The upcoming Pectra Upgrade for Ethereum, alongside the fluctuating trends of ICP and ADA, underscores the dynamic nature of the market. With volatility expected around the Pectra Upgrade and the ongoing bearish trends for ICP and ADA, the next few weeks could prove crucial for these cryptocurrencies.
In summary, Ethereum's Pectra Upgrade on May 7 is poised to bring significant changes to the network, potentially impacting demand and price. However, traders should prepare for short-term volatility as the market reacts to the upgrade's rollout. Meanwhile, ICP and ADA are facing their own set of challenges, with bearish trends indicating that caution may be warranted for investors in these assets.
