Ethereum Price Puzzling Decline: 4.8% Drop This Week Despite Pectra Update Optimism

After a wait of several years, the Ethereum Pectra upgrade is set to launch on May 7, 2025, and will bring improvements to staking, scalability, and overall network efficiency. However, instead of rallying at the news, ETH has been struggling. For the past week, it has declined by 4.8%, while for the last month, it has lost 17.1%. Currently, ETH is trading in the range of $1,800, which leads many to ask, Why isn’t the upgrade boosting the ETH price?

Investors Are Still Cautious

Despite all that the Ethereum Pectra upgrade has to offer, it does not appear to be generating the desired enthusiasm in the market. With general uncertainty in the economy, concerns for liquidity, and general bearish vibes, some investors appear spooked. The ETH market trend continues to struggle with traders apprehensive to step in due to potential macroeconomic data projected to be released on interest rates and inflation that impacts risk entities. To add to the weakness, ETH is experiencing lower volume, making it more vulnerable to downside price action with fewer buyers to buy the property.

Bitcoin’s Struggles Aren’t Helping

Ethereum frequently moves in sync with Bitcoin, and at this stage, BTC isn’t looking too strong. To this end, failure for Bitcoin to break its key resistance has had the whole market feeling the pressure, which includes ETH. The ETH market trend remains fragile, as technical analysis indicates Ethereum is struggling to hold key support, potentially leading to further downside if buyers don’t step in soon. Since Pectra is weeks away, traders are closely monitoring Ethereum’s price action, looking for indications of where it might go next. Let’s review the sections to observe key support and resistance.

ETH Price Action Analysis 

Ethereum (ETH) first traded inside a clearly defined trading range on the 5-minute chart, ranging between resistance around $1,810 and support around $1,780. Oversold RSI conditions were brought on by ETH’s temporary violation of the lower barrier following a violent drop. As bullish momentum took over, this led to a swift recovery and an upward trajectory for prices. ETH then rose toward $1,830 as the price action created a rising channel.  

Chart 1, Analyzed by Alokkp0608, published on April 4th, 2025

Multiple golden and death crosses were shown by the MACD indicator, which represented short-term market volatility and momentum changes. The RSI is getting close to overbought levels as ETH moves toward a significant resistance zone, suggesting a potential slowdown or drop. However, ETH can confront the $1,880 barrier level if buyers maintain their pace. A retest of the $1,780 support zone, where buyers previously intervened, could occur if the price fails to move higher. 

ETH Price at a Crossroads: What Comes Next?

Despite the upcoming Ethereum Pectra upgrade, the ETH price is still under pressure. Uncertainties in the market, low liquidity, and Bitcoin’s persistent struggles have all contributed to ETH’s inability to gain bullish momentum. The price action in the short term is showing recovery, and some technical indicators suggest the price is approaching key resistance around the $1,880 level, where prices could potentially lose viability and retest the $1,780 support level. 

If buying momentum remains strong to push through resistance, traders will look for additional upside. If resistance does not hold and the price regresses below resistance, expect retest levels at $1,780. With Pectra on the way in a number of weeks, the trader should pay special attention to these levels for price this week as Ethereum reacts to economic and broader market trends.

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