Ethereum price plunged 0.21% to $2411 during a less volatile weekend. The modest downtick can be attributed to market uncertainty as Ethereum developers consider splitting the highly anticipated Pectra upgrade. Will the split affect the ETH rally to $4000?
Will Ethereum Price Rally Stall as Pectra Upgrade Faces Division?
The Ethereum developers are considering splitting the highlighted anticipated Pectra upgrade, which is set to enhance the network’s scalability, security, and efficiency, into two distinct parts to meet the 2025 deadline.
Christine Kim, a researcher at Galaxy Digital, believes “the scope of the Pectra upgrade could change drastically if devs decide to split it across two hard forks.”
The plan includes dividing the 20 Ethereum Improvement Proposals (EIPs), with some additional updates still under review. Kim noted the first part could be released by February 2025 and is focused on significant changes to the network’s execution layer and consensus layer.
The second phase will prioritize implementing the Ethereum Virtual Machine (EVM) Object Format (EOF) and PeerDAS, which will further optimize Ethereum’s efficiency and scalability.
This proposal will be finalized in next Thursday’s All Core Devs call. While the Ethereum price could witness initial volatility, the two-stage update reflects developers’ dedication to ensuring a successful Pectra upgrade, which may boost bullish momentum.
The above is how developers are thinking about splitting the current list of 20 EIPs in Pectra across two upgrades.
But aside from the 20, there are a BUNCH of new code changes that developers could decide to include in Pectra 2. They are: pic.twitter.com/rTxZjgAvrL
— Christine Kim (@christine_dkim) September 13, 2024
According to the Santiment data, the 30-day MVRV ratio at -1.75 accentuates that short-term ETH holders are witnessing loss. This negative value often coincides with a potential price jump as the typical speculative trader exits the market at a loss, while large holders use this opportunity to accumulate.
30-day MVRV Ratio | Santiment
ETH Price Heading For Key Resistance Breakout
The Ethereum price daily chart shows a V-shaped reversal from $2,150 to $2,440, registering a 13.4% growth. This second reversal within five weeks accentuates the active demand pressure around the $2,000 psychological level, which pushed the ETH price above a critical downsloping resistance.
While the weekend volatility allows buyers to retest the breached resistance, the post-breakout rally could bolster a 17% rally to challenge the $2,800 resistance. A successful breach of this barrier will set the Ethereum price prediction target at $3,550, followed by $4,100.
ETH/USDT -1d Chart
However, a negative alignment in daily exponential moving averages (20, 50, 100, and 200) and Metalpha’s $90M ETH sale has accelerated overhead selling. If the $2,800 resistance holds firm, the ETH price could prolong its current consolidation and may revisit the $2,000 bottom support.
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