FXOpen
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.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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