- Ethereum’s next support level is $2,520, with potential for a deeper decline.
- ETH faces significant resistance above $2,720, making short-term gains difficult.
- Pectra upgrade aims to improve wallet usability and staking efficiency for validators.
Ethereum (ETH) is currently facing bearish pressure, with recent technical analysis indicating a potential decline unless the price reclaims key resistance levels. As of press time, ETH is trading at $2,725, reflecting a 4.06% drop in the last 24 hours.
Support and Resistance Levels in Focus
The latest analysis from Open4profit highlights the crucial support level for ETH at the $2,520 zone. This price range aligns with a previous demand area, making it a strong point for potential price stabilization. Should selling pressure persist, the next support could be in the $2,150-$2,200 range.
Consequently, a breakdown of these levels would likely result in a deeper price correction. On the upside, however, ETH faces heavy resistance above $2,720. The volume profile shows that this level will make an upward move challenging in the short term. Therefore, unless ETH reclaims the $2,720 resistance, a bearish outlook seems likely.
Declining Derivatives Activity
According to Coinglass data, Ethereum’s derivatives market has experienced a decline across multiple key metrics. Trading volume fell by 2.38% to $41.79 billion, while open interest dropped by 6.60%, standing at $23.20 billion.
Additionally, options volume and open interest saw notable reductions, with decreases of 7.54% and 8.74%, respectively. These figures suggest that market participants are becoming more cautious about Ethereum’s near-term prospects.
Network’s Upcoming Upgrade
Despite the market slowdown, Ethereum’s development community is focused on the upcoming Pectra upgrade. Set to launch in April, Pectra promises several crucial improvements.
Key features include EIP-7702, aimed at enhancing the user experience for Ethereum wallets. This will make it easier for users to pay gas fees in various currencies, not just ETH, by reconfiguring wallet addresses to support smart contract functionality.
Another significant change is EIP-7251, which allows validators to stake up to 2,048 ETH, an increase from the current cap of 32 ETH. This change is designed to streamline validator operations and reduce the long wait times for setting up new nodes.
Ethereum developers are hopeful that these upgrades will help the network regain its competitive edge, especially as it faces increasing pressure from rival networks like Solana.
