Ethereum gears up for a game-changing shift with Pectra, its upcoming upgrade set for May 2025, aimed at revolutionizing user experience and network performance. As ETH struggles to hold at $1,700 in a bearish market, all eyes are on this technical advancement. Will it be enough to reverse the trend and propel the cryptocurrency to new highs?
The Ethereum network is set to reach a new milestone with the deployment of the Pectra update, scheduled for May 7, 2025. This evolution, promising significant technical advancements, has sparked excitement among users and investors, as the price of ETH hovers around $1,700 after a notable drop in recent weeks.
— Goku
Le déploiement de Pectra sur le mainnet d'Ethereum sera finalement effectué le 7 mai. pic.twitter.com/cW83KsyfRR
(@Crypto__Goku) April 3, 2025
Pectra, a combination of “Prague” and “Electra,” encompasses a series of technical improvements aimed at optimizing the Ethereum network. With no less than 11 Ethereum Improvement Proposals (EIPs), this update is one of the most substantial in years. It aims to make the blockchain more efficient, accessible, and attractive to both users and investors.
One of Pectra’s key changes involves Ethereum wallets. Through the integration of smart contract functionalities, they will become more intuitive and offer simplified recovery options. This advancement could appeal to a new wave of users often deterred by the technical complexity of current wallets.
Currently, securing the network as a validator requires precisely 32 ETH. With Pectra, this limit increases to 2,048 ETH, a boon for large investors. By consolidating their validators under a single node, they will reduce operational costs while enhancing Ethereum’s overall efficiency.
Pectra upgrade will introduce EIP-7702, adding a new transaction type to Ethereum (type 4).
— Lorenz Lehmann (@LehmannLorenz) April 3, 2025
It allows EOAs to behave like smart accounts, enabling approving and swapping in one single transaction.
The question, will it see adoption?
Track it with this Dune dashboardpic.twitter.com/odkdkSXKPl
Pectra also includes EIP-7691, a technical enhancement that will boost the performance of Layer 2 solutions like Optimism or Arbitrum. These secondary networks, crucial for fast and cost-effective transactions, will benefit from improved scalability, making Ethereum more competitive against its rivals.
“Pectra upgrade will introduce EIP-7702, adding a new transaction type to Ethereum (type 4). It allows EOAs to behave like smart contracts, enabling approval and exchange in a single transaction,” states expert Lorenz.
The path to Pectra has not been without challenges. Initial tests on development networks highlighted bugs, delaying the initial schedule. However, the successful final trial on the Hoodi network confirmed the official date of May 7, 2025, reassuring the community about the reliability of this update.
Currently, Ethereum is going through a rough phase, with significant losses : -6.2% in 24 hours, -12.6% in a week, and -14.7% in a month. This downtrend, coupled with a 47.1% drop over the past year, positions ETH precariously. However, some see it as an opportunity, hoping that Pectra will act as a catalyst for a rebound.
#Ethereum developers have locked in May 7 for the Pectra Upgrade
— WIZMusk.
One key change, EIP-7251, will boost the staking limit from 32 $ETH to 2,048 $ETH per validator.
This simplifies the staking experience, allowing users to manage multiple validators under one node instead… pic.twitter.com/Kzva9qcgtK(@MuskWiz) April 3, 2025
Past Ethereum upgrades offer promising signs. For example, the 2023 Shapella update, despite initial fears of massive sell-offs, ultimately stabilized prices before a gradual increase. Historically, major technical advancements have often boosted investor confidence, even though the effect may take time to materialize.
Several aspects of Pectra could support a price increase. Staking optimization could attract institutional capital, reducing the available ETH supply. More user-friendly wallets could democratize adoption, while performance gains would appeal to developers and Layer 2 users.
However, uncertainties persist. The current crypto market sentiment, decidedly bearish, could dampen Pectra’s momentum. Additionally, any major launch carries unforeseen technical risks, and some expectations could already be factored into ETH’s current price.
Expert opinions vary. On X, Ito Shimotsuma notes promising technical signals, highlighting accumulation of sell positions that could precede a turnaround. More boldly, CryptoElites predicts ETH reaching $10,000 by the end of 2025, driven by Ethereum’s reinforced fundamentals.
For ETH holders, no technical action is required: your funds will remain intact during the update. If you are considering investing, a gradual approach through Dollar-Cost Averaging (DCA) can mitigate volatility risks. The more cautious may prefer waiting for initial post-launch feedback to assess the actual impact.
Pectra is poised to be a turning point for Ethereum, with improvements that solidify its role as a leader among blockchains. While its potential to raise ETH prices is real, the macroeconomic context and immediate market reaction will be decisive. One thing is certain: this update strengthens the foundation of a network ready to regain investor confidence.
Here is a practical guide to buying ETH on the Weex platform :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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