Ethereum is at a critical juncture, trading around $4,300. High leverage and increased exchange inflows create uncertainty.
Short-Term Volatility and Resistance Levels
Analysis indicates that Ethereum is under significant pressure from high leverage and increased inflows to exchanges, potentially leading to volatility of up to 30%.
Fundamentals and Institutional Investments
Despite short-term risks, positive fundamental indicators and rising institutional investments support a sustained uptrend. Reports show a 45% surge in institutional investments in 2024.
Pectra Upgrade and Its Impact on the Network
The Pectra upgrade, effective since May 7, 2025, enhances staking mechanisms and network efficiency. This upgrade simplifies fee markets and increases throughput, positively affecting Ethereum's ecosystem.
Ethereum continues to balance between short-term volatility risks and long-term positive potential, supported by institutional investments and network enhancements.
