The cryptocurrency market is witnessing significant fluctuations, particularly with Ethereum (ETH) and Bitcoin (BTC), as recent developments hint at potential price movements and shifts in investor sentiment. Ethereum is preparing for a rally after slipping below $1,800, while Bitcoin’s Coinbase Premium Index has fallen into negative territory, signaling bearish trends among U.S. investors.
Ethereum’s price recently dipped below $1,800, a crucial threshold that has traders on alert. Currently, the price is showing a sideways movement above $1,755, marking a significant demand area that extends between $1,754 and $1,765. The EMA at 200 days supports a bullish trend for Ethereum, which is the second-largest cryptocurrency by market capitalization. However, uncertainties stemming from former President Donald Trump’s recent announcement and an upcoming Federal Reserve decision have contributed to this decline. As of now, Ethereum’s price is hovering around $1,832, far from its all-time high of $4,600 reached on November 13, 2021.
On-chain data suggests a potential price increase to $2,000 for Ethereum, with the price in/out of the money indicator from IntotheBlock reflecting strong resistance in the range of $1,805 to $1,857, encompassing a total volume of 5.85 million ETH across 4.48 million addresses. In contrast, the nearest demand zone extends from $1,748 to $1,800, with a total volume of 2.29 million ETH across 3.46 million addresses. This disparity in volume indicates that if Ethereum can surpass the overhead supply zone, it might experience a smoother ascent toward the $2,000 mark.
Furthermore, the upcoming Pectra update for Ethereum, scheduled for May 7, 2025, at 18:05 Italian time, is expected to bring several key improvements to the mainnet. According to a recent tweet from Nansen AI, significant changes include the consolidation of validators, which will see a limit increase from 32 ETH to 2,048 ETH, and an increase in the blobs per block from 3 to 6, potentially making Layer 2 transactions cheaper. Additionally, EIP-7702 will introduce a temporary smart contract functionality in Ethereum wallets. These enhancements aim to facilitate faster staking, lower Layer 2 transaction fees, and smarter wallets, ultimately benefiting the Ethereum ecosystem.
In light of these developments, Coinbase has announced a temporary suspension of Ethereum deposits and withdrawals during the Pectra update, lasting from 17:50 to 18:45 Italian time. This precaution is intended to ensure the safety of user funds, although existing staking positions will remain unaffected.
Meanwhile, Bitcoin’s market dynamics are shifting as well. The Coinbase Premium Index, which measures the price difference between BTC on Coinbase Pro and Binance, has recently dipped into negative territory after a 15-day positive streak. This shift corresponds with Bitcoin’s price falling below $94,000, indicating a reduction in buying pressure on Coinbase, a platform often viewed as a proxy for both institutional and retail demand.
Reports from Cointelegraph have highlighted early signs of selling pressure, with Bitcoin recording over $300 million in negative cumulative spot volume delta (CVD) from April 27 to April 29, 2025. This sustained selling activity has contributed to the recent price decline, with significant selling pressure observed from Bitfinex whales compared to those on Coinbase and Binance. Additionally, around 8,000 BTC in open interest (OI) has been removed from futures markets, reflecting a decrease in leverage.
As Bitcoin hovers around $94,000, it finds itself between two CME futures gaps—one from two weeks ago between $92,000 and $92,500, and another from the recent weekend ranging from $96,400 to $97,400. Historically, these gaps tend to act as magnets for price movements, with trends indicating a propensity for prices to fill these gaps within a few days. Analysts predict that Bitcoin may test at least one of these gaps this week, with a potential decline down to $92,000 becoming more likely, especially since Bitcoin has failed to maintain its position above the 200-day simple moving average (SMA) for the first time since April 11, 2025.
Traders are closely monitoring key levels, with resistance noted at $97,000 to $98,000 and key support around $93,000, where multiple liquidity levels exist. Trader UB commented on the situation, stating, “The situation is quite clear in terms of key levels: $95,500 and $91,900. Personally, I’m not interested in a trade on Bitcoin unless the price reaches one of the levels mentioned above. A recovery to $95,500 would represent a clear long signal up to $99,100.”
In conclusion, as Ethereum prepares for its Pectra update and Bitcoin navigates selling pressures, both cryptocurrencies are at pivotal moments that could shape their short-term trajectories. Ethereum’s potential rally towards $2,000 hinges on overcoming significant resistance levels, while Bitcoin’s immediate future appears uncertain as it confronts key support and resistance zones.
