Ethereum has announced its largest software update called Pectra, aimed at improving network functionality and meeting user needs.
Impact of Ethereum Pectra Upgrade On ETH Price
The update is scheduled for May 7 and is intended to make Ethereum more user-friendly. Some changes include smoother staking, smarter wallets, and cheaper storage. However, as Edein Chin, co-founder of Parataxix Capital, noted, "It’s a welcome software upgrade that will improve the efficiency and utility of the network, but alone not likely to drive Ethereum’s price meaningfully higher." Currently, the ETH price is trading at $1769, with a 2% drop today and over a 40% decrease this year.
What's New For the Ether Network?
Pectra is named after Prague and Electra, a star in the Taurus constellation, and brings the most significant changes proposed in any Ethereum upgrade so far. One major change helps reduce traffic on the network by updating how staking works, potentially leading to more people running nodes to support the system. Vivek Raman, co-founder of Etherealize, remarked, "It’s small things like that that need to be addressed. By turning a wallet into a smart contract, that unlocks a lot of really cool things."
Crypto Market and Competition
Crypto analysts expect Ethereum's price to rebound to the $2,000 level if it breaks above the critical resistance zone around $1,800. Amid expectations of the Pectra update, market attention also turned to the fact that Bitcoin has remained relatively flat and continues to be the leading cryptocurrency. Competitors like Solana have also seen declines, though not as severe.
The Pectra update represents a significant step for Ethereum as it seeks to improve user experience and regain developer confidence. The implementation of new features and changes in the network could positively impact its competitiveness amid growing competition in the cryptocurrency space.
