Ethereum (ETH) has faced recent price declines, yet whale investors continue to accumulate significant amounts of the cryptocurrency. With the upcoming Pectra upgrade and the launch of the Hoodi testnet, Ethereum’s scalability and transaction fees are expected to improve. Meanwhile, technical indicators suggest that ETH could retest the $2,000 level, making key support and resistance levels crucial for market direction.

Whales Accumulate Despite Market Downturn

Despite ETH’s price drop, major investors are making strategic purchases. According to crypto analyst Ali Martinez, whales accumulated 420,000 ETH ($811 million) over the past five days. This activity coincided with a 10.35% decline in Ethereum’s price last week.

While whale accumulation signals long-term confidence, U.S. Spot ETH ETFs recorded $35.30 million in outflows, reflecting investor caution. BlackRock’s ETHA ETF led the exit trend, seeing a $36.37 million capital outflow, the highest among ETH-focused funds.

Ethereum’s Pectra Upgrade and Hoodi Testnet

Ethereum is preparing for its next major upgrade, Pectra, aimed at improving scalability and staking flexibility. This upgrade is expected to enhance transaction capacity and reduce gas fees. On March 17, Ethereum developers will launch Hoodi, a new testnet designed to address challenges faced by Holesky and Sepolia test networks.

If successful, Pectra is scheduled for mainnet integration on April 25, marking a significant milestone in Ethereum’s long-term efficiency. However, according to Turkish NY Radio, the market reaction has been lukewarm, with ETH gaining only 1.8% in the past 24 hours.

Key Price Levels and Technical Indicators

Ethereum is currently trading at $1,930.19, with Relative Strength Index (RSI) at 33.29, indicating that ETH is approaching the oversold zone. This suggests a potential retest of the $2,000 level in the near future.

Additionally, Bollinger Bands (BB) indicate that ETH’s critical support level is around $1,741, while a stronger bullish momentum could push prices toward the mid-band at $2,157 or the upper band at $2,574. A key resistance lies at $2,154, aligning with the 20-day Exponential Moving Average (EMA). A break above this level could confirm a bullish trend, making weekend trading particularly significant for ETH investors.

With Ethereum’s market dynamics shifting, traders will closely monitor whale activity, ETF flows, and upcoming network upgrades to determine ETH’s next price direction.