• Ethereum shows strong bullish momentum with key targets at $3,800 and $4,000.
• The Pectra upgrade doubles Layer-2 transaction capacity, benefiting networks like Coinbase’s Base.
• Market forecasts expect ETH to surpass $5,400 by the end of 2025.

Ethereum (ETH), currently trading at  $2,505.86 at the moment, has lost 2.79% in the last 24 hours, with trading volume falling to $24.76 billion, a decline of 3.96%. For the last week though, the cryptocurrency has appreciated by 7.04%, reflecting the recovery stage following consolidation.

Crypto analyst VipRoseTr points out that Ethereum is showing textbook bullish action following an extended accumulation period, with breaking through a key wedge as an indication of further upside.

The short-term target is breaking the $2,700 hurdle, which, if it takes place, can lead to asustained upward thrust all the way to $4,000. Intermediate resistance is found at $3,800, representing key levels of historic resistance and important psychological price levels.

A key driver of Ethereum’s optimistic outlook is the just-activated Pectra upgrade in May. The upgrade adds support for EIP-7702, an upgrade to the protocol aimed at significantly enhancing Layer-2 network performance, especially for optimistic rollups such as Coinbase’s Base Network.

The upgrade practically doubles Ethereum’s “blobs per block” from 3–6 to 6–9, directly resulting in higher throughputs and lower fees for Layer-2 solutions using ETH for storing and securing their data.

Base lead developer Jesse Pollak describes how the upgrade enables the network to support twice as many transactions every second with low costs despite growing user activity. Base, which was launched in 2023, has already outperformed rivals like Arbitrum in terms of total value secured as it has greatly benefited from Pectra’s upgrade.

The upgrade also makes it easier for wallets to migrate from standard Ethereum wallets to smart contract wallets with no loss of assets or history, reducing the complexity of adoption of features such as gas sponsorship and programmable permissions.

Moving forward, analysts and investors expect Ethereum’s upward movement. Crypto analysts project that, ETH having hit as much as $3,715.17 in January of 2025, further room for growth exists beyond $5,400 at the end of the year. The projection is supported by the technical progress of ETH and its growing ecosystem.

Ethereum’s upcoming upgrade, Fusaka, should take Pectra’s gains and extend them further in terms of capacity for data blobs, further lowering costs as demand rises. Base Network is also not resting on its laurels with its scaling ambitions, targeting 250 Mgas/s of blockspace throughput in order to be at the forefront of Layer-2 solutions.

With continued protocol evolution and heightened user usage, Ethereum’s ecosystem is well placed to continue strong growth and adoption. The mix of technological innovation and marketplace momentum means Ethereum has the potential to reclaim and surpass its all-time highs in the near future, reaffirming its position as a leader in the crypto sector.

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