Ethereum (ETH) is showing signs of life after a period of sideways trading, and the recent Pectra upgrade going live could be the key catalyst behind a fresh wave of momentum. With the daily and hourly charts painting a cautiously bullish picture, is ETH gearing up for a rally beyond $1,900?
Ethereum Price Prediction: What’s Driving Ethereum’s Price Right Now?
ETH/USD 1 Day Chart- TradingView
As of May 7, Ethereum price is trading around $1,827, up 1.36% in the last 24 hours. On the daily chart, ETH has established a firm base above its 20-day and 50-day moving averages, suggesting that bullish traders are regaining control. The ADL (Accumulation/Distribution Line) continues to trend upward, indicating that money is flowing back into ETH after a month-long cooldown.
ETH/USD 1 Hr chart- TradingView
Meanwhile, the hourly chart shows ETH price breaking above the 200-hour SMA before retesting it as support—a classic breakout pattern. A short-term consolidation near $1,830 is forming a potential bullish flag, and if volume increases, a breakout toward $1,880–$1,920 seems likely in the near term.
What is the Ethereum Pectra Upgrade?
The Ethereum Pectra upgrade is a monumental step forward for the Ethereum network. Combining two tracks—Prague (execution layer) and Electra (consensus layer)—Pectra introduces EIP-7702, a game-changer that transforms normal Ethereum wallets into smart-contract-like entities.
This means users can now batch transactions, pay gas in non-ETH tokens, and use session keys when interacting with decentralized apps. These upgrades drastically improve usability, especially for DeFi, NFT platforms, and gaming dApps.
For validators and institutional stakeholders, the validator stake cap increases from 32 ETH to 2,048 ETH, simplifying operations for large-scale node operators. Additionally, Pectra brings better Layer 2 data capacity, leading to faster and cheaper transactions—a long-awaited fix for congestion and gas fee issues.
The Pectra upgrade, launched on May 7, 2025, marks a significant milestone in Ethereum’s evolution by merging two major development tracks: Prague (execution layer) and Electra (consensus layer). Among its standout features is EIP-7702, which allows standard Ethereum wallets (externally owned accounts) to function like smart contracts.
This introduces account abstraction at the protocol level, enabling users to pay gas fees in non-ETH tokens, automate dApp interactions, batch transactions, and delegate permissions—all without switching wallets. These changes significantly improve Ethereum’s user experience (UX), bringing it closer to the seamless feel of Web2 apps, and reduce friction for newcomers to DeFi, gaming, and on-chain commerce.
Another key improvement is EIP-7251, which raises the validator staking limit from 32 ETH to 2,048 ETH, simplifying operations for institutions and large-scale validators. Meanwhile, EIP-7691 increases the number of data blobs per block, boosting Ethereum’s capacity to support scalable Layer-2 networks and lowering transaction fees.
Other under-the-hood upgrades like EIP-6110 help streamline validator deposits and exit mechanisms, reducing delays and increasing reliability. While the new smart account system introduces more powerful capabilities, experts caution it could also open new phishing risks if users aren’t careful. Still, the overall consensus from developers and staking providers is positive: Pectra modernizes Ethereum’s base layer and sets the stage for faster, safer, and more scalable blockchain applications.
How Is the Market Reacting?
So far, the market appears to be welcoming the upgrade. Ethereum’s technical setup has improved since Pectra went live, with the moving averages tightening and the price beginning to climb above resistance zones. While ETH has not yet exploded upward, the foundation for a bullish breakout is solidifying.
This consolidation phase may act as a launchpad if key resistance levels—particularly around $1,880–$1,920—are broken with convincing volume. The next major psychological resistance lies at $2,000, a level that could be tested if bullish sentiment continues and network activity increases thanks to Pectra’s enhancements.
Ethereum Price Prediction: What’s Next?
If Ethereum price holds support above $1,800, the short-term outlook remains bullish. A decisive close above $1,880 on the daily chart could validate a push toward $2,000 and beyond. On the flip side, a rejection at current levels could send ETH price back to the $1,740–$1,760 support range, but such a drop would likely be temporary given the improving fundamentals.
Final Thoughts
With Ethereum’s Pectra upgrade now live and the charts showing renewed strength, ETH is entering a new phase of potential growth. While the breakout hasn’t fully ignited yet, the combination of technical setup, market structure, and fundamental innovation makes Ethereum one of the most promising assets to watch in the coming weeks.
