Can the Pectra Upgrade Make Ethereum Bullish? Trader Sees New Momentum Ahead
2025-05-06
Ethereum is entering a pivotal moment in its journey. While its price has remained within a tight range in recent weeks, all eyes are now on the upcoming Ethereum Pectra Upgrade, set for May 7.
This event, combined with on-chain signals and technical indicators, has sparked cautious optimism among traders who wonder whether Ethereum is ready to break free from its sideways movement and turn bullish once again.
What Is the Ethereum Pectra Upgrade?
The Ethereum Pectra Upgrade introduces several key improvements to the Ethereum network. Among its 11 Ethereum Improvement Proposals (EIPs), EIP-7251 is particularly important. This proposal increases the staking cap per validator from 32 ETH to 2048 ETH.
The goal is to make staking more efficient and scalable by reducing the number of validators required to support the network.
Alongside staking upgrades, wallet usability is also being enhanced. The upgrade includes features like simplified recovery processes and gasless transactions.
These improvements aim to make Ethereum more accessible for everyday users and developers alike, potentially boosting the use of decentralized applications in the long term.
However, the transition may not be entirely smooth. Several delays have already affected the upgrade timeline due to extended testing on networks like Hoodi and Sepolia. A successful rollout could strengthen market confidence.
On the other hand, technical glitches or disruptions could trigger temporary market volatility. Some exchanges may even pause ETH transfers during the upgrade process, adding further uncertainty.
Is Ethereum Showing Bullish Signals?
Beyond the upgrade, traders are closely monitoring Ethereum’s BBTrend indicator—a tool used to identify the strength and direction of a price trend.
The indicator currently reads 1.22, which suggests a mild bullish bias. A value above 1.00 typically implies an uptrend, while a drop below -1.00 would suggest a bearish outlook.
Interestingly, the BBTrend reached 2.23 within the past 24 hours, indicating a brief period of strong upward momentum. While that momentum has cooled, the indicator remains in positive territory, hinting that Ethereum’s trend may still have room to grow if bullish conditions return.
However, the reading is not yet strong enough to confirm a breakout. For now, Ethereum remains in what traders call an early-stage uptrend, where any shift in market sentiment could still reverse the trend.
If the BBTrend pushes back above 2.00, that could signal renewed strength and a clearer bullish direction.
What Are Ethereum Whales Doing?
Another critical factor influencing Ethereum’s price is whale activity. These are addresses that hold between 1,000 and 10,000 ETH. As of now, there are 5,463 such addresses on the network. This figure has remained relatively stable over recent weeks.
When whales accumulate more Ethereum, it often reflects growing confidence in the asset’s long-term value. Their actions can significantly influence market prices due to the size of their holdings.
A rise in the number of whales could support ETH’s price in the near future. Conversely, a decline may suggest caution or uncertainty among major investors, which might limit Ethereum’s upward momentum.
Ethereum Stuck in a Range, Awaiting Breakout
Since April 21, Ethereum’s price has remained trapped between $1,828 and $1,749. This range reflects market indecision. The price is not moving strongly in either direction, as traders wait for a signal that confirms the next big move.
On the technical side, short-term exponential moving averages (EMAs) are still above long-term EMAs—a traditionally bullish pattern. However, they are beginning to converge. If they cross over in the opposite direction, a bearish "death cross" could form, signaling potential downward pressure.
If Ethereum breaks below the $1,749 support level, the next targets could be $1,689, and further down to $1,538 or even $1,385 in a stronger downtrend.
On the other hand, a breakout above $1,873 could lift the price to $1,954 and eventually to $2,104. This would mark Ethereum’s first return above $2,000 since late March.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
Frequently Asked Questions (FAQ)
1. What is the Ethereum Pectra Upgrade?
It is a major update set for May 7 that includes staking improvements and user-friendly wallet features aimed at making Ethereum more scalable and accessible.
2. Why does the staking limit increase matter?
The upgrade raises the validator cap from 32 ETH to 2048 ETH, reducing the number of validators needed and improving network efficiency.
3. Is Ethereum turning bullish?
The BBTrend indicator shows mild bullish momentum, but a confirmed breakout has not yet occurred. The trend remains early and fragile.
4. What role do Ethereum whales play in price movements?
Whales often signal market confidence. An increase in whale accumulation may support ETH’s price, while a decrease can limit momentum.
Disclaimer: The content of this article does not constitute financial or investment advice.
