Ethereum (ETH) has experienced its largest one-day increase since 2021, rising by 31% in just 24 hours. This increase occurred after the successful implementation of the Pectra upgrade, which helped bring ETH closer to a crucial resistance level of $2,500.
However, despite impressive gains, the challenge is whether Ethereum can consistently overcome this level, as investor behavior may hinder further price movement.
Launch of the Ethereum Pectra upgrade
The Pectra upgrade has significantly impacted market sentiment around Ethereum, with exchanges recording net inflows of $15.6 billion since its launch. On May 8 alone, ETH worth $12 billion was sold, marking the largest one-day sell-off in over five months.
This indicates that investors are eager to lock in profits after the price surge, which could potentially dampen the prospects for further ETH growth. Such profit-taking behavior may limit ETH's upward momentum. The macro momentum of Ethereum shows both strength and potential obstacles. IOMAP (In/Out of the Money Around Price) analysis indicates that 11.56 million ETH were purchased in the range of $2,493 to $2,915. This range is critical as ETH must overcome $2,500 to continue the upward trend and secure recent gains.
However, there is significant selling pressure in this range, where ETH totals $27.8 billion. This may limit Ethereum's ability to maintain sustainable growth, as the risk of large-scale sell-offs at higher prices remains significant. The price of ETH is reaching a 2-month high.
The price of Ethereum is currently trading at $2,366, which is 31% higher in the last 24 hours following the Pectra upgrade. This price increase has lifted ETH to a 2-month high and brought it closer to the resistance level of $2,513. Overcoming this barrier will be an important milestone for Ethereum, but the challenge remains whether it can sustain this movement amid investor selling.
The difficulty in overcoming $2,500 lies in the constant selling pressure from investors who have already taken recent profits, as well as those who may sell if the price continues to rise. Thus, Ethereum may face challenges in maintaining an upward trajectory, possibly falling back below the support level of $2,344. In this case, ETH may test the level of $2,141, potentially losing some of its recent gains. However, if the broader market remains bullish and ETH follows Bitcoin's rise above $103,000, Ethereum could break through $2,513 and establish it as a support floor. This would create an opportunity for further growth to $2,654 and negate the current bearish forecast, signaling that Ethereum may continue its recovery to new price highs.#BinanceSquare #Write2Earn #TradeStories #BTCBackto100K #Binance $ETH
