Ethereum’s Big Pectra Upgrade Drops: Why Isn’t ETH Price Soaring?
Ethereum’s Pectra upgrade went live, boosting scalability and usability, yet ETH stays flat at $1,800. What’s holding it back?
Ethereum’s Big Pectra Upgrade Drops: Why Isn’t ETH Price Soaring?
On May 7, 2025, Ethereum activated its Pectra upgrade, a major milestone since the 2022 Merge. Combining 11 Ethereum Improvement Proposals (EIPs), Pectra enhances user experience, scalability, and staking. Key features include EIP-7702, which introduces smart accounts for easier wallet use, and EIP-7691, doubling data capacity for cheaper Layer 2 transactions. It also raises the validator stake limit from 32 to 2,048 ETH, streamlining institutional staking. Despite these advancements, ETH’s price remains stuck around $1,800, barely moving post-upgrade.
Why No Price Surge?
Several factors explain the muted response. First, Ethereum upgrades often trigger “sell the news” events, where traders cash out after anticipated events. Second, broader market concerns, like global trade tensions and recession fears, are overshadowing crypto optimism. Third, Ethereum lags competitors like Solana in decentralized app (DApp) activity, dampening investor enthusiasm.
Several factors explain the muted response. First, Ethereum upgrades often trigger “sell the news” events, where traders cash out after anticipated events. Second, broader market concerns, like global trade tensions and recession fears, are overshadowing crypto optimism. Third, Ethereum lags competitors like Solana in decentralized app (DApp) activity, dampening investor enthusiasm.
What’s Next for ETH?
Pectra lays a foundation for long-term growth by making Ethereum more user-friendly and scalable. Analysts suggest a potential breakout to $2,000 if market conditions improve. However, short-term volatility and macroeconomic pressures could keep prices subdued. For new investors, this upgrade signals Ethereum’s commitment to innovation, but patience may be key.
Pectra lays a foundation for long-term growth by making Ethereum more user-friendly and scalable. Analysts suggest a potential breakout to $2,000 if market conditions improve. However, short-term volatility and macroeconomic pressures could keep prices subdued. For new investors, this upgrade signals Ethereum’s commitment to innovation, but patience may be key.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
