Ethereum’s Pectra upgrade is anticipated to lay the foundation for the next crypto market rally, as it aims to significantly reduce Ether selling pressure. The current price of Ether has experienced a decline of over 32% in February, reaching a low of $2,073 before recovering to $2,245. Analysts suggest this upgrade could ease long-term selling pressure and pave the way for future price appreciation.
Scheduled for March 5, the Pectra upgrade will reduce consensus overhead and enhance Layer 2 scalability, potentially boosting Ethereum’s network capacity and competitive edge. Additionally, Ethereum Improvement Proposal (EIP)-7251 will raise the validator staking limit, encouraging compounding earnings and further reducing sell pressure.
The recent downturn may be a setup for a future upward trend, as suggested by fractal patterns observed from the 2017 cycle. Despite Ethereum’s pricing struggles, the network is addressing criticisms regarding competition from high-throughput chains and Layer 2 solutions.
The Ethereum Foundation has responded to concerns with a leadership shift, introducing Hsiao-Wei Wang and Tomasz Stańczak as new co-directors, effective March 17. This strategic move is part of efforts to reinforce Ethereum’s direction and counteract potential threats from scaling solutions and rival blockchain technologies.
Vitalik Buterin has outlined strategies to bolster Ethereum, focusing on increasing transaction capacity and integrating Layer 2 solutions into the base layer’s revenue stream. The upcoming improvements in the Ethereum ecosystem continue to spur developer interest and investor confidence, despite current market challenges.
