Over the weekend, Ethereum experienced a slight decrease of 0.21%, settling at $2411 amidst relatively low volatility. This decline is likely linked to uncertainty in the market as Ethereum developers deliberate on dividing the eagerly awaited Pectra upgrade. The question lingers: will this split impact the ETH surge to $4000?
The contemplation among Ethereum developers involves potentially splitting the anticipated Pectra upgrade into two separate components, in an effort to meet the 2025 deadline while enhancing the network’s scalability, security, and efficiency. Christine Kim from Galaxy Digital suggests that the scope of the Pectra upgrade could undergo significant changes if developers opt for this bifurcation.
The proposed plan entails separating the 20 Ethereum Improvement Proposals (EIPs), with additional updates still under evaluation. The first segment, slated for release by February 2025, will focus on substantial modifications to the network’s execution and consensus layers. The subsequent phase is set to prioritize the implementation of the Ethereum Virtual Machine (EVM) Object Format (EOF) and PeerDAS, aiming to further enhance Ethereum’s effectiveness and scalability.
The final decision on this proposition is expected to be made during the upcoming All Core Devs call. While initial volatility in Ethereum’s price may occur, the phased update highlights developers’ commitment to a successful Pectra upgrade, which could potentially fuel bullish momentum.
According to data from Santiment, the 30-day MVRV ratio suggests that short-term ETH holders are experiencing losses, indicating a probable price surge as speculative traders exit at a loss and significant holders consider accumulating.
Looking at the ETH price daily chart, a V-shaped reversal from $2,150 to $2,440 shows a 13.4% increase, emphasizing strong demand pressure near the $2,000 level. This momentum has propelled the ETH price above a critical downward resistance, setting the stage for a potential 17% advance towards the $2,800 barrier and potentially targeting $3,550 and $4,100 thereafter.
Nevertheless, a negative alignment in the daily exponential moving averages and the recent $90M ETH sale by Metalpha have intensified selling pressure, possibly leading to a prolonged consolidation and a revisit to the $2,000 support if the $2,800 resistance remains unbroken.