Ethereum’s price took a modest dip of 0.21% to $2,411 over the weekend, a period marked by reduced volatility. This minor downturn comes amid growing speculation that Ethereum developers might split the much-anticipated Pectra upgrade. With the upgrade aimed at boosting Ethereum’s scalability, security, and efficiency, the potential division could impact Ethereum’s trajectory towards its $4,000 price target.
Pectra Upgrade Controversy – A Double-Edged Sword?
The Ethereum community is abuzz with news that developers are contemplating splitting the Pectra upgrade into two distinct phases. This strategic decision could be crucial in meeting the 2025 deadline. According to Christine Kim, a researcher at Galaxy Digital, “The scope of the Pectra upgrade could change drastically if developers decide to split it across two hard forks.” The first phase, projected for release by February 2025, will address significant changes to Ethereum’s execution and consensus layers.
The second phase of the upgrade will focus on the Ethereum Virtual Machine (EVM) Object Format (EOF) and PeerDAS, aimed at further enhancing Ethereum’s efficiency and scalability. This dual-phase approach could redefine Ethereum’s upgrade landscape, potentially influencing market sentiment and price movement.
Market Sentiment – Are Short-Term Holders Losing Faith?
Recent data from Santiment shows a 30-day MVRV ratio of -1.75, indicating that short-term ETH holders are experiencing losses. This negative MVRV ratio often signals an upcoming price jump, as speculative traders exit at a loss while long-term holders take advantage of the lower prices to accumulate.
Technical Analysis – Ethereum’s Path Forward
Ethereum’s daily chart reveals a V-shaped reversal from $2,150 to $2,440, reflecting a 13.4% growth. This rebound highlights strong demand at the $2,000 psychological level, propelling ETH above a key downsloping resistance. As the weekend volatility subsides, buyers are poised to test the newfound support. If ETH breaks through the $2,800 resistance, a 17% rally could be on the horizon, with potential targets set at $3,550 and eventually $4,100.
Also Read: Ethereum Layer 2 Lock-Up Surges 109% – 14.65M ETH Locked, Setting New Records!
However, challenges lie ahead. The alignment of daily exponential moving averages (20, 50, 100, and 200) and Metalpha’s $90M ETH sale have introduced overhead selling pressure. If the $2,800 resistance holds firm, Ethereum might face extended consolidation and could revisit the $2,000 support level.
The potential split of the Pectra upgrade introduces uncertainty into Ethereum’s price outlook. While the technical indicators and market sentiment suggest a potential rally, the upgrade’s division could sway the market dynamics. As Ethereum navigates these challenges, investors and traders will closely monitor how these developments impact ETH’s journey toward the coveted $4,000 mark.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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