On 7 May, a major upgrade to the Ethereum network — known as Pectra — was successfully implemented. It significantly enhanced the network’s scalability and efficiency, while also improving conditions for ETH stakers.

This triggered a surge in demand for Ethereum, and the ETH/USD rate rose confidently from the $1,800 area to current levels around $2,600.

Can the Ethereum price continue to rise?

Technical Analysis of the ETH/USD Chart

The bearish trendline acting as resistance — which originated at the end of 2024 — was largely driven by increasing competition, for instance from Solana (SOL) and Cardano (ADA). However, the Pectra upgrade has made Ethereum more competitive, resulting in a bullish breakout above the trendline.

On the one hand, recent ETH price movements provide a basis for outlining an upward channel (shown in blue), with the price now approaching the upper boundary, which may act as resistance. This could encourage bulls to take profits, potentially setting the stage for a pullback after the sharp rally.

On the other hand, the rise from $1,800 to $2,300 appears almost uninterrupted. From the perspective of the Smart Money Concept methodology, this area could be seen as a significant bullish Fair Value Gap, where strong demand outweighed supply — suggesting that it may act as support in the event of a pullback.

Given the major improvements to the Ethereum blockchain, it is reasonable to assume that:

• any pullbacks are likely to be shallow;
  
• demand appears strong enough to support the continued movement of the ETH/USD price within the emerging upward channel.

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