The crypto markets are consolidating as all eyes are on the upcoming FOMC. The Bitcoin price is plunging after marking the interim highs close to $98,000, while the second attempt to rise beyond $97,000 seems to have failed. On the other hand, the second-largest token, Ethereum, which closely follows the top one, remains consolidated within the pre-determined range that it has been holding since the last week of April. Regardless of the sluggish behavior, the bullish prospects remain intact.
The biggest ever upgrade on Ethereum has just happened, the Pectra upgrade, which has addressed the long-awaited changes. The main focus of the upgrades is on transactions, safe updates, smart wallets and staking. With this upgrade, one can perform multiple actions in a single transaction. There has also been a daily withdrawal limit set for the wallet by introducing a new feature called the Spending Control. Also, the security upgrades have made the transactions faster and cheaper.
Regardless of this, the overall situation of the ETH price does not appear to be good, as it is underperforming compared to both Solana and Bitcoin. Interestingly, the price is around the mid-term lows, even in times when the BTC price is heading towards $100K. However, Ethereum possesses the historical ability to recover quickly.
The ETH price seems to have entered the edge of the consolidation that it was stuck in for a while. The CMF had dropped below 0 for the first time since August 2024, and as it triggered a rebound, the price surged by more than 165% and made three attempts to rise above $4000. Although they failed, the strong MACD signal, which is about to turn bullish, may lead the rally beyond this range.
The price is experiencing a strong squeeze after entering the pivotal resistance zone between $1819 and $1975. The bulls are holding the rally within the range but are failing to initiate a fresh upswing, which could help the token to break above the range. Hence, if the price manages to do so, a rise to $4000 or above can be imminent. In the worst case, if the Ethereum (ETH) price fails to hold above the ascending support, a drop close to $1000 may be feasible.
