Pectra Powers Ethereum: Will ETH Hit $4000?

Ethereum saw a strong surge, recording a 21.8% rise on Thursday, the largest one-day jump since May 2021. Crypto-native spot traders led this rebound mainly, and they withdrew a net of 180,000 ETH from exchanges, a sign of substantial spot market demand pressure. The rally was also fueled by the activation of the Pectra upgrade, Ethereum's biggest network upgrade since the 2022 Merge, which enhanced staking efficiency, validator performance, and Layer 2 scalability, thereby restoring investor confidence and inspiring a risk-on sentiment in the crypto market.

 It hits an intraday high of $2625 and is currently trading around $2557.

Overall trend remains bullish as long as support of $2000 remains intact. The key near-term resistance is at $2625 any breach above targets $2770/$3000/$3400/$3600/$3800/$4000. A robust bullish trend will only materialize above $4100.

Immediate support is around $2420. Any violation below will drag the price down to $2270/$2173/$2000/$1750/$1675/$1620/$1500/$1200/$1000. A breach below $1000 could see Ethereum plummet to $800/$500.

It is good to buy on dips around $2428-30 with SL around $2270 for a TP of $3000/$4000.