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Is Ethereum Price $4K Rally at Risk Amid Pectra Upgrade Division Talks?

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2 months ago

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Ethereum price plunged 0.21% to $2411 during a less volatile weekend. The modest downtick can be attributed to market uncertainty as Ethereum developers consider splitting the highly anticipated Pectra upgrade. Will the split affect the ETH rally to $4000?

Will Ethereum Price Rally Stall as Pectra Upgrade Faces Division?

The Ethereum developers are considering splitting the highlighted anticipated Pectra upgrade, which is set to enhance the network’s scalability, security, and efficiency, into two distinct parts to meet the 2025 deadline.

Christine Kim, a researcher at Galaxy Digital, believes “the scope of the Pectra upgrade could change drastically if devs decide to split it across two hard forks.”

The plan includes dividing the 20 Ethereum Improvement Proposals (EIPs), with some additional updates still under review. Kim noted the first part could be released by February 2025 and is focused on significant changes to the network’s execution layer and consensus layer.

The second phase will prioritize implementing the Ethereum Virtual Machine (EVM) Object Format (EOF) and PeerDAS, which will further optimize Ethereum’s efficiency and scalability.

This proposal will be finalized in next Thursday’s All Core Devs call. While the Ethereum price could witness initial volatility, the two-stage update reflects developers’ dedication to ensuring a successful Pectra upgrade, which may boost bullish momentum.

According to the Santiment data, the 30-day MVRV ratio at -1.75 accentuates that short-term ETH holders are witnessing loss. This negative value often coincides with a potential price jump as the typical speculative trader exits the market at a loss, while large holders use this opportunity to accumulate.

Ethereum (ETH) priceEthereum (ETH) price
30-day MVRV Ratio | Santiment

ETH Price Heading For Key Resistance Breakout

The Ethereum price daily chart shows a V-shaped reversal from $2,150 to $2,440, registering a 13.4% growth. This second reversal within five weeks accentuates the active demand pressure around the $2,000 psychological level, which pushed the ETH price above a critical downsloping resistance. 

While the weekend volatility allows buyers to retest the breached resistance, the post-breakout rally could bolster a 17% rally to challenge the $2,800 resistance. A successful breach of this barrier will set the Ethereum price prediction target at $3,550, followed by $4,100.

Ethereum PriceEthereum Price
ETH/USDT -1d Chart

However, a negative alignment in daily exponential moving averages (20, 50, 100, and 200) and  Metalpha’s $90M ETH sale has accelerated overhead selling. If the $2,800 resistance holds firm, the ETH price could prolong its current consolidation and may revisit the $2,000 bottom support.

Frequently Asked Questions (FAQs)

The potential split of the Pectra upgrade may create initial market volatility, but developers remain committed to ensuring a successful upgrade, which could boost recovery momentum.

Ethereum developers are planning to split the Pectra upgrade to reduce complexity and meet the 2025 deadline, implementing the changes in two phases

The key resistance level for Ethereum is around $2,800, with a potential price target of $3,550 to $4,100.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ethereum Price Is Surging, Will It Hit $6,000?

Published

4 days ago

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November 4, 2024

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All eyes are currently on the world’s largest altcoin Ethereum (ETH) as it strongly defends the crucial support levels of $2,400. The Ethereum price reversed its trajectory shooting past $2,500 over the weekend with analysts stating that ETH has taken the perfect support and is gearing up for a nearly 2.5x rally to $6,000 ahead.

Ethereum Price Rally to $6,000 Ahead?

Crypto analyst Ali Martinez identified an attractive risk-to-reward setup for Ethereum (ETH) while suggesting a promising long position for the altcoin. Martinez disclosed his trade approach, noting that he’s placed a stop-loss below $1,880 while setting an ambitious price target of $6,000. Martinez believes that the current Ethereum price structure provides a compelling opportunity for investors looking to capitalize on the altcoin’s potential upward momentum in the near term.

However, for the ETH price to confirm a rally to $6,000, it first needs to clear the crucial resistance of $2,680. Breaking past this sloping trendline can give bulls the upper hand.

While Ethereum has been underperforming Bitcoin for a very long period of time, institutions continue to remain bullish on the altcoin. Last week, Swiss banking giant UBS rolled out its first Ethereum-based tokenized investment fund unit in Singapore.

At one end, the Bitcoin dominance has climbed to 60.5% while the Ethereum dominance has slipped to 13%, down from 18% earlier this year.

It will be interesting to see how further will the Ethereum price continue to lag behind Bitcoin, or reverse the trajectory and begin the altseason soon. Last week, legendary trader Peter Brandt predicted the ETH price crash to $1,550 levels.

Is Ethereum the Next Amazon?

A research analyst at crypto asset manager 21Shares believes that Ethereum’s potential remains largely untapped while comparing the blockchain to the Amazon of the early 1990s. Leena ElDeeb, Research Analyst at 21Shares, said: Ethereum is “complex, akin to Amazon in the 1990s — promising vast potential but less straightforward in its use cases”.

Federico Brokate, vice president and head of the US business unit at 21Shares, stated that Amazon started just as a small online bookstore. However, it later transitioned into becoming a global e-commerce conglomerate and a cloud computing giant.

Similarly, Ethereum had a humble beginning in 2015 as a blockchain network supporting smart contracts. However, it now supports decentralized finance (DeFi) applications worth more than $140 billion. Brokate said:

“Just as Amazon evolved beyond books to redefine entire industries, Ethereum may also surprise us with revolutionary use cases that we can’t fully envision today.”

Although ETH’s market cap of $320 billion represents just 6.25% of Amazon’s $2 trillion valuation, Brokate highlights a significant advantage for Ethereum compared to Amazon in the 1990s. This includes the extensive pool of talent dedicated to enhancing the network’s utility. “Amazon has grown to employ over 1.5 million people worldwide — growth we may see paralleled in the Ethereum ecosystem,” he added.

Even though the Ethereum price has been testing investors’ patience currently, it could bounce back to new highs once it comes out of the bearish grip. ElDeeb said that the inflows into spot Ethereum ETFs will also continue to rise as the ETH price gains strong bullish momentum.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ethereum Price Can Crash to $1550 Predicts Veteran Trader Peter Brandt

Published

7 days ago

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November 1, 2024

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The world’s largest altcoin Ethereum (ETH) continues to remain in the bear grip while failing to sustain above $2,600 for a long time. Amid the broader crypto market correction, the Ethereum price has slipped another 5.5% and is currently trading at $2,509 levels with a market cap of $302 billion. Veteran trader Peter Brandt predicts an ETH crash all the way to $1,550 amid low buying interest for the altcoin.

Ethereum Price Can Crash to $1,550, Says Peter Brandt

Veteran trader Peter Brandt noted the absence of a buy signal for Ethereum (ETH), emphasizing that the chart structure remains bearish. According to Brandt, ETH still has an unmet downside target of $1,551, reinforcing a cautious outlook for the altcoin amid recent crypto market movements.

Courtesy: Peter Brandt

The Ethereum price has been forming a downward trending channel of lower highs and lower lows. Popular crypto analyst Michael van de Poppe suggested that if ETH continues with its current downward momentum, the asset could see an additional 10-20% decline from here.

Courtesy: Van de Poppe

On the other hand, van de Poppoe also believes that the market conditions are nearing a potential reversal, both for U.S. Treasury yields and for ETH itself. He pointed out that tomorrow’s U.S. unemployment data will be pivotal, potentially influencing broader market direction.

ETH Approaches The Demand Zone, What Happens Next?

Popular crypto analyst Mammon highlighted that the Ethereum price is approaching a critical demand zone with bulls looking to form a higher low formation and support the ongoing bull trend. Mammon cautioned that a close below approximately $2,460 could signal risk, given the liquidity accumulation below the mid-range level.

Courtesy: Mammon

On the other hand, if Ethereum successfully forms a higher low within this support zone and retests the volume area high (VAH), Mammon sees a strong potential for a breakout. Reclaiming this level could set the stage for a significant price rally, according to his analysis. some market analysts are also giving targets of Ether price to $18,000.

Furthermore, the inflows into spot Ethereum ETFs have been picking up once again. Over the last three days, the spot Ether ETFs have registered net positive inflows. On Thursday, October 31, the BlackRock Ethereum ETF (ETHA) saw inflows of $50 million as per Farside Investors data. However, the Grayscale Ethereum ETF (ETHE) saw outflows of $36.6 million taking the total inflows to $13 million.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Market Expert Says Ethereum Is “Cooked,” Here’s Why

Published

1 week ago

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October 28, 2024

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Market analyst Justin Bons has stirred conversation with his recent statements on Ethereum, expressing skepticism about its future. Bons, a vocal figure in the crypto space, points to issues around Ethereum’s approach to scaling and what he describes as a shift away from its original vision. He suggests that ETH’s current reliance on Layer 2 (L2) solutions over scaling its Layer 1 (L1) has placed it on a challenging path. This situation could hinder its growth prospects in a rapidly competitive market.

Justin Bons Argues ETH Layer 1 Scaling Has Stagnated

In a recent thread on the X platform, analyst Justin Bons criticized Ethereum’s trajectory, claiming that its Layer 1 development has stalled while Layer 2 solutions take priority. Bons attributes this stagnation to the financial incentives driving developers and venture capitalists (VCs) to focus on Layer 2 projects. 

According to Bons, developers can earn significantly more from launching L2 projects than from contributing to Layer 1 enhancements, creating what he calls a “perverse incentive” structure that could impede ETH price and the network’s growth.

This incentive, Bons argues, has led to Ethereum’s Layer 1 being purposely held back to benefit profit-driven L2 projects. He contends that with L2 projects offering quick financial gains, developers have limited motivation to improve Ether’s foundational infrastructure. This will be detrimental to users seeking decentralized and censorship-resistant solutions.

The analyst noted,

“A sad end for such a beautiful chain that once promised to change the world. Today ETH could not be further away from that original cypherpunk dream, as L1 capacity is so limited.”

Venture Capital Interests in L2s Create Centralization Concerns

Bons further claims that venture capitalists have influenced Ethereum’s development by capitalizing on L2 transaction fees, leading to a more centralized structure. Unlike Layer 1, which is community-governed, L2 platforms are often for-profit entities where fees benefit investors and VCs, sparking concerns over censorship and fund freezes. 

According to Bons, this structure restricts Ether’s potential to scale autonomously, as L2 projects dominate with centralized controls over transactions.

These dynamics, Bons suggests, have caused many users to move toward alternative platforms that prioritize decentralized principles. Citing Solana as an example, he highlights how it has gained popularity due to its centralized resistance and competitive network features, which attract users.

In addition, market analysts have pointed to several reasons why ETH Price has remained below the $3,000 mark throughout 2024. Among the key reasons for the stagnation was competition from Layer 1 blockchains like Solana. The emergence of L2 networks has siphoned liquidity from Ethereum, impacting its overall adoption and market position.

However, while some voices like Bons question Ether’s future, other analysts counter the idea that the network is “dead.” According to 10X Research, Ethereum shows signs of resilience, with technical indicators suggesting a price bottom may be forming. Notably, Ether’s daily trading volume, nearly $12.2 billion, is second only to Bitcoin.

Analysts also observe that Ethereum continues to register higher highs and lows on technical charts, hinting at potential recovery. At the time of writing, ETH price is $2,515, a slight 1% surge in the last 24 hours.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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