ETH Price Crashes 45%—Can the Ethereum Pectra Upgrade on May 7 Trigger a Bullish Comeback?

After an unstable Q1, Ethereum could be gearing up. On May 7, the long-awaited Ethereum Pectra upgrade goes live on mainnet after passing its final Hoodi testnet dry run. This major upgrade merges the Prague and Electra improvements into one release, featuring 11 EIPs that aim to increase performance, staking efficiency, and wallet usability. 

Ethereum’s Technical Evolution Aims at Price Recovery

The Ethereum Pectra upgrade introduces smart accounts, allowing wallets to become easier to use and recover. It is a critical step toward onboarding new users. This could help reduce entry barriers for retail traders, increasing participation and overall network usage. As usability rises, Ethereum’s on-chain activity could follow, setting the stage for upward ETH price movement.

At the institutional level, EIP-7251 raises the validator staking limit from 32 ETH to 2,048 ETH. This makes Ethereum more attractive for large holders and entities by reducing the need to run multiple validator nodes. This simplified staking system supports stronger liquidity lockups and could create whale movement, reinforcing the Ethereum price after Pectra as a key metric to watch.

Could Pectra Fuel a Bullish Trend?

After two bug-related delays, Ethereum’s developers successfully deployed Pectra on the Hoodi testnet and locked in the May 7 mainnet launch date during a core call on April 3. With no issues during its final trial, confidence is building that this release will boost sentiment. Network enhancements like Verkle Trees and Peer Data Sampling will ease storage pressure and optimize performance. 

Chart 1 – ETH/USD live price, published on TradingView, April 5, 2025.

Currently, the ETH price is trading around $1,809, marking a steep 45% drop in Q1. The above Ethereum chart shows a consistent downtrend, highlighting strong bearish momentum. The RSI (Relative Strength Index) indicator is hovering near 40, indicating weak momentum and approaching oversold territory. 

Bear Trap or Breakout Zone?

Revenue from transaction fees dropped from $142M in January to just $21M in March, while Ethereum’s burn rate hit its lowest since 2021. Despite this, Ethereum maintained a stronghold in DeFi, recording $64 billion in DEX volume in March. It is more than Solana and BNB Chain combined. 

These mixed signals make the Ethereum price after Pectra a decisive inflection point for both short- and long-term traders. Many analysts expect the upgrade to serve as a potential breakout zone, possibly reversing bearish pressure. If increased staking and smart wallet usage follow the upgrade, the bullish trend may gain traction quickly.

Ethereum Price After Pectra: Eyes on the Future

This most recent update is characterized by a change in emphasis from decentralization to a balance between usability and scalability. By targeting ease of access and large-holder convenience, Ethereum is laying the preparations for sustainable growth. This strategy could significantly impact Ethereum’s price after Pectra, especially as improved infrastructure begins to attract sidelined capital.

Developer sentiment remains optimistic. If the May 7 launch proceeds smoothly and key features gain traction, market confidence could return, sparking FOMO among retail investors and larger ETH holders. With the ETH price already dropped and investor attention mounting, the Pectra upgrade may trigger the recovery Ethereum needs to reclaim its position in the crypto space.

Final Verdict: Price Pressure or Price Power?

The Ethereum Pectra upgrade is more than just a technical update. By combining the performance, staking, and wallet enhancements, it builds a compelling narrative for recovery. With whales watching for impact, May 7 could become the moment the ETH price breaks resistance and moves into a new bullish zone. As the countdown begins, Ethereum’s price after Pectra becomes the key metric everyone’s watching.

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