Ethereum (ETH) Price Prediction After Pectra Upgrade (May 7th)

Ethereum is on the brink of Pectra upgrade (May 7th), its most substantial one since the 2022 Merge

The world's second-largest cryptocurrency, Ethereum (ETH), is set for a pivotal moment on May 7 with the Pectra upgrade, the most significant since last year's Merge.

As the cryptocurrency edges closer to the upcoming upgrade, interest in the token continues to grow.

The price of Ethereum is currently trading at $1,826 and has shown signs of consolidation after a recent correction. The 20-day EMA at $1,780 has also held as support, according to CoinMarketCap data.

Pectra is a two-fold upgrade that will change both the consensus and execution layers of Ethereum. It includes 11 Ethereum Improvement Proposals (EIPs), each designed to enhance specific aspects of the network.

Among the EIPs is EIP-6816, which introduces a new opcode for modular exponentiation, aiming to improve the efficiency and capabilities of smart contracts.

Another notable EIP is EIP-7010, which introduces account abstraction to simplify the user experience and lower the barrier to entry for new users.

After months of delay and several testnet bug fixes, Ethereum developers are finally deploying the upgrade.

The recent correction has led to a decline in Ethereum spot volume, which might indicate that sellers are becoming exhausted.

"This could be a good sign as lower volume often corresponds with reduced volatility and less panic selling," said analyst Darkfost in a recent post on CryptoQuant's Quicktake.

If sellers are tired of selling and there are no more sellers to dump their ETH, then we might be able to see a more stable bottom.

"We are still too early to call a bottom but if the sellers are exhausted and there are no more sellers to dump their ETH, we might be able to see a more stable bottom," added the analyst.

On the technical front, the RSI is currently at 56.2 and is neither overbought nor oversold, while the MACD line (blue) is above the signal line (orange), and the histogram is positive.

The technical setup suggests that the price of Ethereum could move higher from here.

If the bulls break the 1.0 Fib extension at $1,841, then the next targets are 1.618 Fib at $2,030, a crucial resistance zone.

Further bullish price targets to consider are 2.618 at $2,335, 3.618 at $2,641, and 4.236 at $2,829.