Ethereum Pectra Upgrade Set to Enhance Scalability and Staking Limits
As the Ethereum Pectra upgrade approaches, traders are focusing on the ETH-BTC pair due to anticipated volatility. The Bollinger Bands indicate low volatility and consolidation, signaling potential for significant price movement.
- Bollinger Bands are currently at their tightest since June 2020.
- This suggests Ether may soon experience heightened volatility against Bitcoin.
- Traders are monitoring price action for breakout direction.
ETH/BTC Bollinger Bands. Source: Trading View
Ethereum Pectra Upgrade Details
- The upgrade is scheduled for May 7.
- Maximum staking limit for validators will increase from 32 ETH to 2,048 ETH.
- Blob data units per block will rise from 3 to 6, with a maximum capacity of 9 blobs.
- The transition to EVM Object Format (EOF) aims to enhance smart contract performance.
Blockchain analytics firm Nansen notes that Layer-2 networks will benefit significantly from these changes, reinforcing Ethereum’s role in data availability and scaling strategies. DeFi, NFTs, and blockchain games are also expected to gain momentum.
Ethereum has faced strong selling pressure, dropping below $1,800, with liquidations totaling $67 million last week.