Ethereum appears ready for a major move, with analysts watching closely for a breakout above $4,000—a key level for further gains. Ali Martinez predicts that if Ethereum breaks through resistance, it might climb to $7,400, $10,000, or even $14,000.
The price currently hovers around $2,705.34, reflecting a 2.36% drop in the last 24 hours. Support is found at $1,850, while resistance at $4,000 stands as a major barrier. The price action suggests a period of consolidation, setting the stage for a sharp move that could change the market outlook.
Key Support and Resistance Levels
Ethereum has been moving within a narrow range, hovering near $2,785.
The current market indicates that bulls must drive prices above $4,000 to confirm a breakout. A move above this threshold could spark an upward rally, first targeting $7,400 and eventually reaching $10,000 or even $14,000.
Source: X
Potential downside risk is if prices drop below the $1,850 support level, Ethereum could slide further, testing lower levels. The trading pattern, marked by consolidation, often precedes a sudden price move.
Market Activity and XRP Derivatives Trends
According to Coinglass data, the derivatives market data highlights notable shifts in trading volume and interest. XRP futures lost 15.29% in trading volume, now at $10.01 billion, while open interest fell by 5.68% to $3.48 billion.
In contrast, options activity has surged, with volume rising 86.79% to $3.51K and open interest up 18.94% to $1.81 million. This split indicates growing speculative interest in XRP options, even as futures activity declines.
Ethereum’s Pectra Upgrade and Its Impact
Ethereum is gearing up for its next major upgrade, Pectra, which aims to enhance speed and efficiency across the network. The upgrade will initially launch on testnets before being deployed on the mainnet.
Ethereum developer Tim Beiko noted that the Holesky testnet will fork on February 24, 2025, with the Sepolia testnet following on March 5, 2025. If Sepolia performs well, the final mainnet upgrade will be decided at the All Core Developers (ACD) meeting on March 6, 2025.
Pectra is going live 🥳
Holesky will fork at slot 3710976 (Mon, Feb 24 at 21:55:12 UTC)
Sepolia will fork at slot 7118848 (Wed, Mar 5 at 07:29:36 UTC)Assuming Sepolia goes smoothly, we’ll pick the mainnet slot on the March 6 ACD call 📅
— timbeiko.eth (@TimBeiko) February 6, 2025
Pectra introduces eight Ethereum Improvement Proposals (EIPs), including EIP-7702, which improves wallet functionality. This change lets wallets operate similarly to smart contracts, furthering Ethereum’s account abstraction efforts.
Additionally, EIP-7251 raises the staking limit for validators from 32 ETH to 2,048 ETH, potentially boosting network security and efficiency. Originally intended as Ethereum’s largest upgrade, Pectra was divided into two phases for smoother implementation.
Preparations for the Fusaka Upgrade
While Pectra is nearing launch, Ethereum developers are already planning the next major upgrade, Fusaka. This upgrade will likely include two core proposals: EOF (Ethereum Object Format) and PeerDAS (Peer Data Availability Sampling).
Other EIPs are under review, including EIP-7793, which improves encrypted mempools, and EIP-7843, which adds slot number pre-compiles for better transaction tracking. Additionally, EIP-7870 aims to standardize hardware and bandwidth requirements for Ethereum validators and full nodes.
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