Short-term support levels to watch are $1754 (20-day moving average) and $1600 (psychological level). A drop below these levels could trigger large-scale liquidations. Resistance is at $1920, and a breakout may challenge levels above $2000. The RSI (58.02) shows moderate momentum, but the Bollinger Band volatility index (BPI 140.12) suggests the market may enter a consolidation phase. Recent price increases are accompanied by declining trading volume, presenting a risk of 'volume-less increases', necessitating caution for potential pullbacks.

The Pectra upgrade (May 7) is an important positive, raising the validator staking cap to 2048 ETH, which may attract institutional funds and reduce selling pressure. However, if the upgrade does not meet expectations, it could trigger short-term sell-offs. On the regulatory front, the UK's FCA's plan to ban crypto loans may 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 have only seen $2.49 billion, limiting the upward potential for ETH.