Ethereum Price News: Can ETH Hit $3,000 After Pectra Upgrade? This Bullish Sign Says ‘Yes’

Trading volumes have surged by nearly 46% during this period as Pectra introduces significant positive changes to the EVM.

Pectra should also make the Ethereum Virtual Machine (EVM) more scalable, faster, and cheaper. In addition, it makes ETH deflationary as a portion of transaction fees will now be burned.

Other critical changes made to the blockchain include the possibility of collecting validator rewards on up to 2048 staked tokens. This should supposedly attract more robust validator pools to increase the network’s efficiency.

Moreover, the maximum number of blobs – data that can be included in a single Ethereum block – has been increased from 6 to 9. Higher blobs should expedite transactions for layer-two protocols like Arbitrum and will help them reduce transaction fees.

Finally, it will now be possible to have the recipient of a transaction pay for gas fees. This is particularly positive as it solves a recurrent issue where wallets were unable to transfer assets unless they had enough ETH to cover these fees.

ETH is On Track to Hit $3,000

Today’s strong uptick is the second time that Ethereum has posted a big single-day gain in the past couple of weeks. On April 22, the token rose above its 21-day exponential moving average (EMA) and has stood above this key indicator since then.

Although positive momentum was weakening heading to the deployment of Pectra. However, today’s jump has pushed ETH above its point of control (POC), which sat at $1,850. If the price closes above this level, bulls would now be in full control of the price action.

In a previous article, we set forth a $3,000 target for Ethereum after the token broke above its consolidation and stepped out of oversold levels in the Relative Strength Index (RSI).

The past three times this has happened, the price has bounced strongly to the $3,000 – $4,000 level. These two recent bullish breakouts have now confirmed this bullish outlook.

The next target for ETH would be the 200-day EMA, which currently sits at $3,056. This translates into a 54.7% upside potential based on current levels.

Momentum indicators are quite strong and favor a bullish scenario as well. The RSI is now nearing overbought levels. Coming out of a strong downtrend, this is a big buy signal as it confirms that the trend reversal is strong enough to trigger the beginning of a bullish cycle.

These Two FVGs Could Act as Support for ETH

In the hourly chart, the structure is quite bullish as well and there’s significant room for a pullback so late buyers can still enter the rally. There are two big fair value gaps (FVGs) that could serve as support if the price drops in the following hours.

These fair value gaps typically act as magnets for the price as market participants look to fill outstanding buy orders. If order volumes are strong enough at these levels, these areas tend to trigger strong upward movements.

The RSI has already entered overbought levels while the MACD’s histogram shows that positive momentum has been decelerating. This increases the odds of a strong drop in the following hours. However, traders should look for entries for a long position as the market’s trend is as bullish as it gets.