Ethereum is struggling to keep up with other markets. However, future Pectra upgrades may be the catalyst you need.
The Ethereum (ETH) Pectra upgrade scheduled for this week has been featured on the trader’s radar for some time. On Tuesday, May 6th, MEXC COO Tracy Jin shared insights with crypto.news about possible upgrades. In particular, Zinn believes Ethereum has a unique opportunity to change market sentiment.
“While Bitcoin’s advantage is currently at 63.9% per year, altcoin continues to struggle to capture sustained market momentum outside of trend-based speculative movements.
According to Jin, the upgrade will enable the next generation of Web3 innovation. This will help update institutional interests and stimulate the Ethereum ecosystem. With potentially increasing developer activity, Ethereum may be able to regain its dominant position in the Altcoin market.
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If the upgrade goes smoothly, Jin believes that Ethereum will break out and recover it at a $2,200 level. This can even pave the way for a wider Altcoin season. However, there are risks, especially when technical issues or delays occur.
“However, if the upgrade encounters technical issues or delays like the previous rollout, Ethereum could lose its further market position in a rapidly rising ecosystem like Solana, continuing its overwhelming market performance, potentially falling below the $1,300 support zone,” Tracy Zinn said.
What will Pectra change for Ethereum?
Pectra is a combination of two upgrades, Prague and Electra, and will make a major difference in Ethereum’s Validator system. In particular, the upgrade will raise the effective validator shares from 32 ETH to 2,048 ETH. This allows large validators to spin up nodes, but introduces some centralization risks.
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Additionally, the upgrade includes changes to the functionality of your Ethereum wallet and the introduction of features such as account abstraction. This enhances the ability to Ethereum Smart Contract and also improves network scalability.
read more: Bitcoin prices now rely on Stablecoins more than retail demand, says MEXC COO
