Ethereum's Pectra Upgrade Boosts Transactions, Price Consolidates

Ethereum, the second-largest cryptocurrency by market capitalization, has been consolidating within a predetermined range since late April. Despite the sluggish behavior, bullish prospects for Ethereum remain intact. The recent Pectra upgrade, the biggest ever for Ethereum, has introduced significant changes aimed at improving transactions, security, and staking. The upgrade allows for multiple actions in a single transaction and has set a daily withdrawal limit for wallets through a new feature called Spending Control. Additionally, security upgrades have made transactions faster and cheaper.

However, the overall situation of the ETH price does not appear to be favorable, as it is underperforming compared to both Solana and Bitcoin. Interestingly, the price is around mid-term lows, even as the BTC price is heading towards $100K. Ethereum has historically shown the ability to recover quickly from such situations.

The ETH price has entered a consolidation phase, with the CMF dropping below 0 for the first time since August 2024. This triggered a rebound, causing the price to surge by more than 165% and make three attempts to rise above $4000, although these attempts failed. A strong MACD signal, which is about to turn bullish, may lead the rally beyond this range.

The price is currently experiencing a strong squeeze within the pivotal resistance zone between $1819 and $1975. While the bulls are holding the rally within this range, they are failing to initiate a fresh upswing that could help the token break above the range. If the price manages to do so, a rise to $4000 or above could be imminent. In the worst-case scenario, if the Ethereum (ETH) price fails to hold above the ascending support, a drop close to $1000 may be feasible.