Ethereum’s highly anticipated Pectra upgrade is just around the corner, set to be one of the largest upgrades yet. The primary goal of this upgrade is to enhance transaction speed, scalability, and validator operations on the Ethereum network. With the impending upgrade, many are predicting an increase in volatility that could potentially break ETH free from its current bearish trend.
Despite Ethereum’s price remaining stagnant for the past couple of weeks, holders are holding strong. In fact, the number of accumulating addresses has surged by 22.5% since March. Additionally, both whales and retail investors are withdrawing from exchanges, as indicated by the negative exchange netflow. The stock-to-flow ratio has also reached a yearly high of 374, signaling a growing scarcity of ETH in the market.
Interestingly, there has been a sudden surge in whale activity, with a dormant whale waking up after 4 years and withdrawing over 1200 ETH. This has contributed to a new high in total whale accumulation, indicating strong bullish sentiment among large holders.
As the upgrade approaches, whales are showing increased interest in accumulating ETH, suggesting a positive outlook for the token’s price. Meanwhile, the ETB/BTC pair has reached a yearly support level, with the RSI indicating oversold conditions. This could potentially lead to a strong reversal, impacting not only ETH but other altcoins as well.
The big question on everyone’s mind is whether the ETH price will reclaim $2200 this week. After breaking out of a descending triangle in April, ETH entered an ascending triangle and is currently hovering around $1800. With support tested at $1785, the path to higher prices seems clearer.
Analyzing the weekly chart, it appears that Ethereum may undergo a period of consolidation between $2500 and $1500, as the weekly Gaussian channel has turned bearish. Historically, price tends to consolidate within a range until it breaks out above the average bands. Additionally, the weekly RSI has hit a low similar to levels seen in 2022, suggesting a potential rebound towards new highs.
Overall, all eyes are on Ethereum as it gears up for the Pectra upgrade and potential price movements in the coming days. Stay tuned for more updates on ETH and the broader cryptocurrency market.