- Ethereum Pectra Upgrade will improve overall efficiency, allowing faster transactions and greater flexibility in gas fees.
- On-chain metrics reveal that exchanges have witnessed an outflow of $132 million worth of ETH tokens.
Ethereum [ETH], the world’s second-largest cryptocurrency by market cap, is poised for massive upside momentum. The trend follows the recent Crypto Strategic Reserve announcement and its upcoming Pectra upgrade.
Ethereum Pectra Upgrade’s impact on ETH price
According to a recent report, the Ethereum Pectra Upgrade is scheduled for the 5th of March 2025. The upgrade aims to enhance the network’s scalability, security, and usability. Additionally, it will improve overall efficiency, allowing faster transactions and greater flexibility in gas fees.
These developments are already benefiting ETH, resulting in an impressive price rally and increased participation from notable traders and investors.
At the time of writing, ETH was trading near $2,370, having surged over 9% in the past 24 hours. However, the asset reached an intraday high of $2,540 but faced a price correction due to profit booking and ongoing significant selling pressure.
Ethereum price action and key levels
According to expert technical analysis, Ethereum has corrected by 7.5% and is now at a crucial support level near $2,300. Examining the asset’s four-hour chart, ETH appears to be forming an inverted head-and-shoulders pattern.
Based on recent price action and historical momentum, if ETH holds above the $2,300 mark, there is a strong possibility of an 8.5% rebound to the $2,540 level, which serves as the pattern’s neckline.
If the price breaches this neckline and closes a four-hour candle above the $2,570 mark, ETH could surge another 10% to reach $2,800 soon.
Source: TradingView
Despite a notable price surge in the past 24 hours, the asset has been unable to break above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that ETH is still in a downtrend.
Long-term holder’s bullish attitude
With these ongoing price rallies and ETH’s bullish momentum, long-term holders and investors have been found accumulating tokens from exchanges, as reported by the on-chain analytics firm Coinglass.
Data revealed that exchanges have witnessed an outflow of $132 million worth of ETH tokens in the past 24 hours.
This substantial outflow from exchanges indicates potential accumulation, which could lead to buying pressure and further upside momentum.
Source: Coinglass
Traders believe in short-term correction
On the other hand, intraday traders seem to be taking advantage of the ongoing price correction. They are betting on the bearish side, suggesting that ETH could experience further short-term downside.
At press time, traders are over-leveraged at $2,300 on the lower side and $2,420 on the upper side, reflecting the current market sentiment.
According to Coinglass data, traders betting on the bullish side hold $220 million worth of long positions at the $2,300 level. In comparison, those on the bearish side have built $433 million worth of short positions.
Source: Coinglass
While traders anticipate short-term corrections, on-chain data suggests long-term investors are accumulating ETH. If key resistance levels are broken, Ethereum could see a strong rally toward $2,800.
