Will Ethereum (ETH) reach $2,500 thanks to the Pectra upgrade?

Ethereum ETHUSD showed the most significant intraday rise since 2021. It strengthened by 31% in just one day. The surge occurred due to the successful Pectra upgrade.

The latest price jump helped ETH approach an important resistance level of $2,500. However, the question remains: will Ethereum be able to break through this level and hold above it? Investor behavior may pose a barrier to further price rise.

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Pectra update successfully launched

The Pectra update has significantly affected market sentiment regarding Ethereum. Exchanges recorded a net inflow of $15.6 billion since its launch. On May 8 alone, ETH worth $12 billion was sold, marking the largest single-day sale in more than five months. This indicates that investors are looking to lock in profits after the price surge. Such behavior could weaken the prospects for further rise of ETH.

The macro impulse of Ethereum shows both strength and potential obstacles. The IOMAP analysis (In/Out of the Money Around Price) shows that 11.56 million ETH have been purchased in the range of $2,493 to $2,915. This range is critical. ETH must break above $2,500 to continue the upward trend and solidify recent gains.

This range creates significant selling pressure, as it contains tokens worth $27.8 billion. The risk of large-scale sell-offs at higher prices remains high. This could limit the potential for sustainable growth.

Ethereum price reaches a 2-month maximum

The token rose by over 30% in a day after the Pectra update. As a result, it reached a 2-month high and approached the resistance level of $2,513. Overcoming this barrier will be an important milestone for Ethereum. However, the question remains whether ETH can sustain this momentum.

The pressure from sales by investors who have already made a profit after the recent rise is hindering the breakthrough of the $2,500 mark. New sellers may also join them if the price continues to rise. Thus, Ethereum may face difficulties and could potentially drop below the support level of $2,344. In this case, ETH risks testing the $2,141 level, negating some of the recent gains.

If the broader market maintains a bullish sentiment and ETH follows Bitcoin, it could break the $2,513 level and turn it into support. This would pave the way for further rise to $2,654 and negate the current bearish scenario.

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