Ethereum Price Prediction: As Trend Line Support Holds ETH Looks Set to Hit $4,000

Ethereum (ETH) has gone up by 41% in the past 30 days even though it has experienced a mild pullback in the past few days.

A combination of regulatory tailwinds, a weaker U.S. dollar, and the successful implementation of the Pectra upgrade has improved the token’s outlook and managed to revive its price from a yearly low of around $1,400 to nearly $4,000 just a few days ago.

Average Transaction Fees are Less Volatile Since Pectra

The Pectra upgrade has managed to reduce and stabilize gas fees and has made Ethereum much more competitive and scalable compared to rival blockchains like Solana (SOL) and Sui (SUI).

Ethereum’s Average Transaction Fees – Source: Etherscan

Ethereum still has the largest DeFi ecosystem in the crypto space by a long shot with a total value locked (TVL) of $81 billion at the time of writing, meaning a 60% market share in this particular segment. Its closest rival, Solana, has a TVL of just $9.6 billion.

Data from Etherscan shows how gas fees have stabilized since Pectra. As a result, the average transaction fee paid on Ethereum has been regularized to a much tighter range compared to historical patterns.

Back in November, December, and February, the chart shows specific time periods where the average fee increased to as much as $14. However, since May, the highest peak seen was around $2.9 even though the demand for ETH and network activity has increased lately as a result of the token’s rally.

This is clear evidence that Pectra has improved the operational framework of the Ethereum Virtual Machine (EVM), which may explain why investors are piling on ETH lately.

ETH on Track to Hit $4K After Key Support Bounce

Looking at our latest Ethereum price prediction, the price action has followed the trajectory we expected almost to the letter as it retested and bounced off a long-dated trend line support.

ETH/USD Daily Chart (Coinbase) – Source: TradingView

ETH’s strong reaction after hitting this line is evidence that this is a relevant marker for the market. This bounce has also paved the way for a retest of the $4,000 level within the next few days.

There could be significant liquidity standing above $3,950 so we could expect quite an explosive move if (or maybe when) ETH hits $4K. This trend line support is the key level to watch moving forward. As long as the price stays above it, ETH’s outlook will continue to be bullish.

The most likely near-term target will be $4,100 if we cross that psychological threshold. However, here’s where fundamentals may play in favor of a move toward a much higher level – maybe $4,500 or even $5,000.

Pectra seems to be a game-changer for Ethereum’s scalability and efficiency. As the home of top TradFi and DeFi applications, cheaper gas fees and faster transaction execution speeds are a must to maintain its lead.

This early evidence of transaction fee stability paired with increased institutional adoption of decentralized solutions, the launch of new altcoin-linked exchange-traded funds (ETFs), and the regularization of stablecoins in the United States could provide the necessary tailwind to lift ETH to a new all-time high.

Will ETH follow Bitcoin (BTC) to uncharted territory? Maybe. This year has been surprisingly positive and could hold some more surprises up its sleeve.