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Ethereum’s price dipped slightly by 0.21% to $2,411 during a relatively calm weekend, raising concerns about the trajectory of its rally toward the $4,000 mark. The minor decline comes amid market uncertainty as Ethereum developers deliberate splitting the highly anticipated Pectra upgrade into two phases to meet a 2025 deadline.
Pectra Upgrade Split: Impact on Ethereum’s Rally?
The Pectra upgrade, designed to enhance Ethereum’s scalability, security, and efficiency, may be divided into two distinct parts. According to Christine Kim, a researcher at Galaxy Digital, such a split could significantly alter the upgrade’s scope. Developers are considering dividing 20 Ethereum Improvement Proposals (EIPs), with additional updates under review.
If the split occurs, the first phase of the upgrade, focused on significant changes to Ethereum’s execution and consensus layers, could be released by February 2025. The second phase would emphasize implementing the Ethereum Virtual Machine (EVM) Object Format (EOF) and PeerDAS, further optimizing the network’s performance. A final decision is expected in the upcoming All Core Devs call.
While the upgrade’s division might initially cause market volatility, it underscores the developers’ commitment to ensuring a smooth and successful transition, potentially maintaining or even boosting bullish momentum for Ethereum.
Will Ethereum Overcome Resistance Levels?
On the technical front, Ethereum’s price has shown a V-shaped recovery from $2,150 to $2,440, indicating a 13.4% growth. This second rebound within five weeks highlights strong demand around the $2,000 support level, pushing ETH above a crucial downsloping resistance.
If buyers capitalize on this post-breakout momentum, Ethereum could rally by 17% and challenge the $2,800 resistance level. A successful breach could lead to further gains, with targets at $3,550 and $4,100. However, negative alignment in daily exponential moving averages and a recent $90M ETH sale by Metalpha has intensified selling pressure. If $2,800 proves resilient, Ethereum may prolong its consolidation phase and retest the $2,000 support.
While short-term holders are currently at a loss, according to Santiment data, this situation may present an accumulation opportunity for larger investors, potentially setting the stage for a renewed bullish push.