Ethereum Spot Volume Declines Ahead of Pectra Upgrade
The Ethereum Pectra upgrade is scheduled to launch today. Recent spot trading volumes for ETH have declined, coinciding with a 2.44% price increase to approximately $1,838.
Analyst Darkfost from CryptoQuant suggests that the drop in spot volume may reduce market volatility and selling pressure, although it doesn't guarantee a market bottom.
Technical Analysis
Ethereum has been in a correction phase for five months. The ETH-BTC pair faces significant volatility risks ahead of the Pectra upgrade. Ethereum aims to break above the 50-day EMA resistance level. Attention is on the upcoming FOMC meeting, where Fed Chair Jerome Powell may announce rate decisions that could influence market dynamics.
CME Group's Fed Watch tool indicates over a 95% probability that rates will remain unchanged, potentially delaying altcoin rallies.
Pectra Upgrade Details
The Pectra upgrade integrates two phases, Prague and Electra, introducing 11 new EIPs. Key changes include:
- Enhanced wallet functionality allowing regular accounts to execute smart contract code (EIP-7702).
- Increased staking limit for validators from 32 ETH to 2048 ETH (EIP-7251).
- Improved rollups for more efficient scaling.
- User-friendly enhancements for broader accessibility.
- Infrastructure advancements paving the way for future updates like Verkle Trees and EIP-4444.
- Streamlined developer tools for easier dApp development.