The Ethereum Pectra upgrade, activated on Wednesday, has shown little immediate effect on the cryptocurrency’s price, rising just 0.96%. Daily active addresses also fell slightly, as trading volumes experienced minimal growth. Analysts from B2BINPAY anticipate a fundamental boost from the upgrade, possibly pushing ETH above $2,000 despite current resistance levels. Key changes include an increase in staking limits and stablecoin fee options, though short-term sentiment remains cautious ahead of the Federal Reserve’s upcoming interest rate decision.
Ethereum’s recently launched Pectra upgrade didn’t have the explosive results many expected. After its activation on Wednesday, the second-largest cryptocurrency barely shifted, climbing just 0.96%. With trading volumes showing a meagre rise of 0.52% over the last day, many are questioning the immediate impact of these updates on the network’s performance.
Additional insights from IntoTheBlock revealed a decrease of 0.25% in daily active addresses within the same timeframe. This suggests that the market response to the upgrade may not be as robust as hoped, despite the substantial changes it incorporates into the Ethereum ecosystem.
Nevertheless, analysts from B2BINPAY are optimistic. They believe this upgrade could act as a “tailwind” for Ethereum, presenting strong fundamentals that might drive prices upward. They cautioned investors to prepare for potential resistance around the $1,900 to $2,000 mark, a level where ETH faced setbacks earlier in April. Still, the underlying network changes, paired with a favourable global market environment, could lead ETH into a bullish phase, surpassing that critical resistance zone.
Among the notable alterations Pectra brings is an increase in the staking cap, moving from 32 ETH to a significant 2,048 ETH. Moreover, transaction fees can now be paid with stablecoins instead of just ETH, enhancing transaction flexibility and potentially attracting more users.
“While these modifications aim to strengthen Ethereum’s infrastructure, it’s worth noting that the price might not respond dramatically in the short term – particularly with the looming Federal Reserve interest rate decision on the horizon,” Grigore Roșu, CEO of Pi Squared, commented to Benzinga.
As it stands, Ethereum’s price is around $1,862.80, reflecting a slight increase of 2.2% over the last day, according to Benzinga Pro data. However, the coin is still down significantly by 43.90% year-to-date. Some remain hopeful that the new changes will rejuvenate ETH’s standing and performance as market conditions evolve.
