Ethereum (ETH) Price: Rebounds as $2k Holds Strong, Will Pectra Upgrade Fuel the Next Bull Run?

TLDR

• ETH price increased by 6.18% in the last 24 hours, currently trading at $2,206
• The cryptocurrency found strong support at the critical $2,000 level after a 30% drop
• Technical analysis suggests consolidation in the $2,000-$2,500 range in the mid-term
• The Pectra upgrade was successfully deployed on the Sepolia testnet on March 5, 2025
• Pectra’s improvements to staking flexibility may enable the creation of staked Ether ETFs

Ethereum has rebounded after testing a key support level of $2,000. The price of the leading altcoin has increased by 6.18% since yesterday. This bounce comes after a significant market downturn.

The cryptocurrency is currently trading at $2,206 at press time. This represents a modest recovery from recent lows.

Ethereum recently faced a sharp decline. The cryptocurrency plunged nearly 30% to reach the critical $2,000 support level. This drop followed a rejection at the 200-day moving average near $2,900.

The decline was made worse by market uncertainty. President Trump’s tariff war announcement triggered fear-driven selling. Many investors rushed to exit positions during this period.

Despite the severe drop, Ethereum found strong support at $2,000. This level aligns with key ICT OTE levels that traders watch closely. The support has temporarily halted the downward momentum.

On the hourly timeframe, ETH price is showing mixed signals. After a false breakout of the local resistance of $2,262, the price has started to decline. Sellers may push the price lower in the short term.

The daily chart tells a more positive story. The rate of ETH is moving up after bouncing off the support level of $2,076. However, if today’s candle closes far from its peak, further growth might be postponed.

From a mid-term perspective, there are no clear reversal signals yet. Traders should focus on the vital zone of $2,000. If a breakout below this level occurs, we could see a test of the $1,750 area shortly.

The recent market volatility caused massive liquidations. Nearly $980 billion in leveraged positions were wiped out within 24 hours. This represents one of the largest liquidation cascades in years.

With leverage now reduced, the perpetual markets have cooled down. This creates an opportunity for a market reset. Fresh supply and demand dynamics could emerge as cautious traders re-enter at key price levels.

Market analysts expect ETH to consolidate between $2,000-$2,500. This range-bound activity may continue until a breakout signals the next major move. Both bulls and bears are watching these key levels closely.

If Ethereum sustains its position above $2,000 and builds momentum, the current phase may evolve into a new bullish wave. Key resistance levels to watch are $2,500 and $3,000. A sustained uptrend will depend on increased spot market demand.

Pectra Upgrade

Meanwhile, Ethereum’s technological development continues to progress. The Pectra upgrade was successfully deployed to the Sepolia testnet on March 5, 2025. This marks an important milestone before the mainnet launch.

The upgrade consists of 11 separate Ethereum Improvement Proposals (EIPs). It went live with a “perfect proposal rate” according to Core Ethereum Contributor Terence. The Sepolia deployment started at 7:29 am UTC and executed 100% of the proposed codes.

Despite this success, risks persist regarding the total execution time. The failure of Holesky tests in February 2025 has raised questions about potential delays for the mainnet launch. Developers must fix “correlation penalties” and “validator balance drains” before finalizing the upgrade.

The Pectra upgrade holds importance for institutional adoption. It’s expected to improve staking flexibility and create better opportunities for both retail investors and institutions. These improvements may enable the creation of the first staked Ether exchange-traded fund (ETF).

Financial institutions are preparing to benefit from this emerging market. Grayscale’s proposed staked Ether ETF shows commitment to attracting institutional investors to Ethereum. The enhanced capabilities of Pectra could strengthen Ethereum’s position as it faces competition from Solana and other blockchains.

Ethereum developers are proceeding with caution for the mainnet launch. The team is dedicated to resolving remaining technical issues before setting an activation date. More information regarding the mainnet launch is expected to be shared on March 6.