Short-term support levels to watch are $1754 (20-day moving average) and $1600 (psychological level). A breach could trigger large-scale liquidations. Resistance is at $1920, and a breakout could challenge levels above $2000. 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 decreasing trading volume, presenting a risk of 'upward movement without volume,' necessitating caution for a pullback.

The Pectra upgrade (May 7) is a significant positive, with the validator staking cap raised 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 plans to ban crypto loans, which 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 received $2.49 billion, limiting ETH's upward potential.