Ethereum’s Big Pectra Upgrade: Why Isn’t ETH Soaring to the Moon?
Ethereum’s Pectra upgrade is live, but ETH stays flat at $1,800! Is a $2,000 breakout coming?
On May 7, 2025, Ethereum activated its Pectra upgrade, a major overhaul promising smarter wallets, cheaper Layer-2 fees, and better staking. Expected to boost scalability and user experience, Pectra includes 11 Ethereum Improvement Proposals (EIPs), like EIP-7702 for account abstraction, which lets regular wallets act like smart contracts. Yet, despite the hype, ETH’s price barely budged, hovering around $1,800. Why didn’t this upgrade spark a rally?
Pectra enhances Ethereum’s ecosystem—doubling data blobs for Layer-2s, raising validator stakes to 2,048 ETH, and simplifying DeFi interactions. Experts like P2P.org’s Artemiy Parshakov predict long-term gains, with staking yields potentially rising from 3.2% to 3.4%. Posts on X note a deflationary shift, with 40,000 ETH ($77 million) not issued post-upgrade, tightening supply. However, macroeconomic fears, like global trade disputes, are overshadowing tech upgrades. Investors also see Pectra as a “sell-the-news” event, with short-term traders cashing out, as
@AlvaApp
noted on X.For newbies, this shows crypto prices don’t always follow tech wins. Ethereum’s upgrades make it faster and cheaper, but market sentiment and external factors like tariffs can dampen immediate gains. Long-term, analysts at CoinGape suggest ETH could hit $2,000 if adoption grows. Patience is key—Pectra lays groundwork for future growth, not instant spikes.
Will ETH break out soon, or is it stuck in a rut? Share your thoughts below and follow trafy.io for more crypto insights
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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.
