Ethereum (ETH) Shows Resilience by Reclaiming the $1,817 Price Level Ahead of the Pectra Upgrade

Ethereum price today showed resilience as it recovered to $1,817 by 10:07 ET on May 1, recovering from a low of $1,737 hit earlier in the day.

The world’s second-largest cryptocurrency, now in the midst of a 16% price rally from a March low, is preparing for the Pectra upgrade on May 7, which some analysts say could be the catalyst for a decisive bullish rally.

ETH price action on April 30 was volatile, beginning with a brief rise from the opening price.

However, ETH quickly formed a pin bar candlestick and later a full-body red candle, signaling a potential downtrend. To add to the bearish signals, a Death Cross on moving averages at 01:05 UTC also contributed to the pessimistic outlook.

From the lows of $1,790, where it found support, ETH moved in an upward channel but faced resistance at $1,812. By noon, another bearish pattern emerged, pushing the price to its low of $1,737.

But the tide began to turn as an RSI oversold condition occurred at 13:50 UTC, suggesting a potential reversal.

As predicted, the price found support at $1,735 and showed signs of an uptrend with a Golden Cross on MACD.

Pectra Catalyst For ETH Price

The Pectra upgrade, set to launch on May 7, is generating excitement among Ethereum enthusiasts.

This update will introduce 11 Ethereum Improvement Proposals (EIPs) focused on three key areas: scalability through layer-2 solutions, user experience improvements, and staking efficiency.

One of the most notable improvements is EIP-7702, which will allow conventional user wallets, known as Externally Owned Accounts (EOAs), to temporarily function as smart contracts.

This capability will introduce functionalities like using tokens other than ETH for gas fee payments and enabling gas sponsorship or batch transactions.

These changes could lower entry barriers for non-technical users, especially in gaming, payments, and mobile apps, where poor user experience has hindered mainstream adoption.

It’s important to note that even with these additions, validators will still collect fees in ETH at the protocol level, and the role of ETH as the primary network token remains unchanged.

Moreover, the Pectra update will streamline the process for institutional investors to enter and exit the Ethereum liquid staking market.

Currently, validators must lock up a minimum of 32 ETH to participate in staking, and the procedures for entering and exiting staking are relatively complex, which might deter some institutional players.

But the Pectra upgrade will introduce an improvement that allows validators to stake in increments of 1,568 ETH, and the minimum staking amount will be reduced to 0 ETH.

This change could significantly increase institutional interest in liquid staking on Ethereum, potentially leading to higher demand for ETH and a reduction in circulating supply.

Technical Signals Point To Ethereum Bottom

From a technical standpoint, several indicators suggest that Ethereum may be forming a bottom at present.

Most notably, ETH has formed a monthly Dragonfly Doji candlestick pattern—the same formation that preceded its massive 25,000% climb during the 2017 bull cycle.

This pattern, characterized by a long lower wick with little to no upper wick and a close near its opening level, typically indicates rejection of lower prices and possible recovery of bullish momentum.

Additionally, Ethereum is retesting its long-term parabolic support zone, which has historically served as a launching pad for new uptrends.

As one researcher noted, “In every cycle, this zone triggers a reversal — and this time is no different.”

On-chain data further supports the case for an Ethereum comeback. The MVRV Z-Score, a key indicator used to identify market tops and bottoms, has returned to its historical accumulation zone.

Entries into this zone in past cycles corresponded with market bottoms in late 2018, March 2020, and mid-2022—all of which preceded notable rallies.

This metric suggests that Ethereum may be undervalued at current levels, presenting a favorable entry point for investors.

While derivatives market data shows some caution among professional traders, options market data indicates growing comfort with ETH’s current value.

Put options, which reflect less concern about further downside risk, are now being priced at levels comparable to call options, signaling a balanced risk perception.

Technically, ETH appears poised for a move above the critical $1,840 resistance. A successful breakout could open the path toward $1,920, with the potential to reach $2,000 in the near future.

However, failure to surpass $1,840 might lead to a retest of support at $1,760 or possibly $1,73