Recent news surrounding Ethereum (ETH) indicates a mix of price action, significant on-chain activity, and anticipation for upcoming network upgrades. Here's a summary of what's been happening:
Price Action and Analysis:
* Price Increase and Resistance: Ethereum has experienced a bullish week, with a notable price increase (around 12-13%). It is currently trading around $1790-$1800. However, it's facing resistance in the $1780-$1820 supply zone and at its 50-day Simple Moving Average (SMA) around $1812.
* Potential Short-Term Correction: Some analysts suggest that after the recent rally, Ethereum might see a short-term correction before potentially retesting the $2000 level.
* Liquidation Risk: Data suggests that a significant amount (nearly $1 billion) of long positions could be liquidated if the price drops to around $1731 or lower, indicating potential volatility.
* Key Levels to Watch: For potential upside, levels around $1840, $1890, and potentially $1900 are being monitored. On the downside, $1669 is a crucial support level to hold.
On-Chain Activity and Investor Behavior:
* Significant Accumulation: Long-term holders have shown strong confidence, with a substantial inflow of Ethereum into accumulation addresses. One report noted the largest single-day inflow since 2018, with 449,000 ETH being accumulated.
* Increased Active Addresses: Ethereum's on-chain activity is rising, with active addresses increasing by about 10%. This suggests growing engagement from both retail and institutional users.
* ETF Inflows: U.S. spot Ethereum ETFs have seen net inflows recently, indicating renewed institutional interest after previous outflows.
* Whale Activity: There was notable whale activity last week, with significant amounts of ETH being both sold and moved to exchanges.
Upcoming Network Upgrade - Pectra:
* Launch Date: The Pectra upgrade is scheduled for May 7, 2025. This is a significant upgrade that combines features from the "Prague" and "Electra" development phases.
* Key Features: Pectra aims to improve user experience, staking, scalability, and EVM capabilities. Key features include:
* Account Abstraction (EIP-7702): Enables externally owned accounts to function like smart contracts, allowing for features like transaction batching, sponsored gas fees, and social recovery.
* Staking Improvements (EIP-7251, EIP-7002, EIP-6110): Increases the maximum staking limit per validator to 2,048 ETH, allows execution-layer exits for stakers, and speeds up the onboarding of new validators.
* Data Throughput and Layer-2 Scaling (EIP-7691, EIP-7623): Increases the amount of "blob" data in blocks for layer-2 rollups, improving throughput and reducing fees on layer-2 networks.
* Enhanced Cryptography and EVM Features (EIP-2537, EIP-2935): Introduces a precompile for more efficient BLS signature verification and allows smart contracts to access historical block hashes.
Other Noteworthy Points:
* DeFi Lagging: While on-chain activity on the base layer is increasing, the decentralized finance (DeFi) sector on Ethereum hasn't seen a corresponding surge in activity.
* Market Attention: Ethereum is currently among the top cryptocurrencies attracting the most attention in the market.
In summary, Ethereum is experiencing a period of price recovery and increased investor interest, supported by significant on-chain accumulation and positive inflows into ETFs. The upcoming Pectra upgrade is a major development that promises to bring significant improvements to the network. However, traders are also cautious of potential short-term price corrections after the recent gains.#EthereumNews $ETH 
Let's trade together
