The price of Ethereum (ETH) has experienced a notable upward trend, currently trading around $2,200 after a significant 20% rally this week. This bullish momentum is supported by several factors, indicating growing confidence in the second-largest cryptocurrency.
One significant development is the successful deployment of the Pectra upgrade on Wednesday. This ambitious upgrade brings several key improvements to the Ethereum network, including better account abstraction, increased institutional staking capabilities, and enhanced scalability through EIP-7702, EIP-7251, and EIP-7691. While the immediate price reaction was somewhat muted, analysts believe that the long-term impact of these enhancements will be positive for ETH's value.
Technically, Ethereum has broken above the $1,861 resistance level, which had been a consolidation zone for over two weeks. This breakout, along with closing above a descending trendline from early January, signals a strengthening bullish trend. If this momentum continues, the next target could be the 200-day Exponential Moving Average (EMA) around $2,427.
However, the Relative Strength Index (RSI) on the daily chart is currently in overbought territory, suggesting a potential for a pullback. If a retracement occurs, the key support level to watch is around $2,000.
Overall, Ethereum's recent price action and the positive developments within its ecosystem paint a bullish picture for the short to medium term. The market is closely observing whether ETH can sustain its upward trajectory and overcome the resistance levels ahead.