TLDR
- Ethereum has bounced back to $1,817 after touching a low of $1,737 on April 30
- Pectra upgrade scheduled for May 7 will bring key improvements to scalability, UX, and staking
- A monthly Dragonfly Doji pattern has formed, historically a bullish reversal signal
- ETH is currently testing its parabolic support zone, often preceding new uptrends
- On-chain metrics suggest ETH may be undervalued at current price levels
Ethereum has staged a recovery to $1,817 on May 1, 2025, bouncing back from its recent dip to $1,737. This price action comes just days before the highly anticipated Pectra upgrade, which could serve as a catalyst for a stronger upward move.
The past 24 hours have seen ETH trading between $1,737 and $1,817. Technical indicators now suggest a possible shift in market sentiment, with the RSI approaching the Overbought zone.
On April 30, ETH began the day with short-lived upward momentum before forming bearish patterns that pushed prices downward. A Death Cross confirmed this negative trend around 01:05 UTC.
After finding support at $1,790, ETH moved into an upward channel but faced resistance at $1,812. By midday, bearish pressure returned, driving prices to the daily low of $1,737.
The turning point came when the RSI entered the Oversold zone at 13:50 UTC. This oversold condition triggered a reversal, with ETH finding solid support at $1,737. A Golden Cross on the MACD at 14:15 UTC confirmed the start of a bullish phase.
Pectra Upgrade: Game-Changer for Ethereum
The Ethereum network is preparing for its Pectra upgrade on May 7, which many experts believe could be the spark needed to break ETH out of its recent trading range. The update will implement 11 Ethereum Improvement Proposals (EIPs) targeting three main areas.
The upgrade will boost scalability through enhanced layer-2 solutions, improve user experience, and make staking more efficient and accessible. These changes could make Ethereum more attractive to both retail users and institutional investors.
EIP-7702 in Ethereum’s Pectra upgrade introduces smart wallet-like functionality to EOAs—enabling gas sponsorship and batch transactions similar to what Paymaster offers today.
Watch @Dav1dDuong and @MurrLincoln explain how these upgrades support smart wallet adoption. https://t.co/VBQ3Bi7DCm
— Coinbase Developer Platform🛡️ (@CoinbaseDev) April 29, 2025
EIP-7702 stands out among the improvements. This proposal will allow regular user wallets to function temporarily as smart contracts. The change opens new possibilities including token-based gas fee payments and fee sponsorship options.
These enhancements could help overcome barriers to mainstream adoption, particularly in gaming, payment processing, and mobile applications where user experience has been a major hurdle. Despite these changes, ETH will maintain its core role in the network, with validators still required to pay fees in ETH at the protocol level.
Institutional Appeal Through Staking Changes
The staking upgrades included in Pectra could renew institutional interest in Ethereum. Validators will soon be able to stake up to 2.48 ETH, a change from the current 32 ETH requirement. The update will also streamline both entry and exit processes for validators.
These modifications come at a critical time, following reports of some institutions reducing their ETH holdings. The improved staking mechanism could encourage more institutional participation, locking up additional ETH in validator nodes and effectively reducing the available supply in circulation.
Technical Patterns Point to Potential Bottom
Despite recent price struggles, several technical indicators suggest Ethereum may be forming a bottom. Most telling is the formation of a monthly Dragonfly Doji candlestick pattern – the same pattern that appeared before ETH’s massive 25,000% rally during the 2017 bull market.
This pattern features a long lower wick with minimal or no upper wick, while closing near its opening price. Market technicians typically view this as a sign that sellers are losing control and buyers are stepping in at lower prices.
Ethereum is also retesting its long-term parabolic support trend line, which has historically served as a launching pad for new uptrends. One market researcher noted: “In every cycle, this zone triggers a reversal — and this time is no different.”
Early in 2017, when ETH bounced from this same trend line, it launched a vertical climb from around $6 to $1,400.
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