Short-term support levels to watch are $1754 (20-day moving average) and $1600 (psychological level). If these levels are breached, it may trigger large-scale liquidations. Resistance is at $1920, and a breakout could challenge $2000 and above. The RSI (58.02) indicates moderate momentum, but the Bollinger Band volatility (BPI 140.12) suggests the market may enter a consolidation phase. Recent price increases have occurred with declining trading volume, presenting a risk of 'volume-less increase', requiring caution for a potential pullback.

The Pectra upgrade (May 7) is a significant positive, as the validator staking cap has been raised to 2048 ETH, which may attract institutional funds and reduce selling pressure. However, if the upgrade falls short of expectations, it could trigger short-term selling. On the regulatory front, the UK's FCA plans to ban crypto lending, which could impact the DeFi ecosystem, while the EU's MiCA regulation transition period is approaching, necessitating attention to compliance risks. Institutional funds continue to flow into Bitcoin ETFs (net inflow of $39.56 billion), while Ethereum ETFs only see $2.49 billion, limiting the upward potential for ETH.