Ethereum Pectra Upgrade is Live – But ETH Price Weakness Persists
The Ethereum blockchain has activated what is known as the Pectra upgrade. This technical move on the network doesn’t bring any directly notable changes. In the market, Ethereum shows weakness.
Ethereum (ETH) is currently trading at around 1,550 US dollars, missing the opportunity to benefit from what is known as internal impulses from the network. Since Monday, the Pectra upgrade has been implemented on the Ethereum blockchain, but it passes by largely without significant reactions in the market. A look at the details of the Pectra upgrade, which was also known as Cancun, is helpful at this point. It is beyond question that Ethereum finances decentralized finance (DeFi) and NFTs as the leading network.
Pictus: This is behind Ethereum’s Pectra upgrade
The Ethereum Pectra upgrade introduces EIP-4844 and aims to give Layer 2 solutions such as Arbitrum, Optimism, and Polygon a better basis, for example, to better address the topics of scalability through additional data storage. The Pectra upgrade also introduces five more technical proposals, which, among other things, eliminate a loophole in smart contracts that couldn’t previously be properly terminated. The Pectra upgrade proves once again that the Ethereum blockchain is seen as a leader in terms of innovation, even if no improvements are inserted into the basic functional code (the protocol) by the upgrade.
Market Reactions to Ethereum Pectra Upgrade
Ethereum had prepared several test networks for Pectra in advance, allowing those responsible for Layer 2 solutions to prepare accordingly. Consequently, the launch of Pectra went without major complications, and there was no disruption to Ethereum’s performance or its connected solutions. Nevertheless, investors seemingly took little note of the Pectra upgrade. Data from Coinglass shows that in the wake of Pectra, long leverage positions on Ethereum were liquidated at a high volume, suggesting continued pessimism among market participants.
Conclusion: Ethereum after the Pectra upgrade without new momentum
The Ethereum Pectra upgrade, for which the official developers planned for over two years, was a fundamentally important step to further increase the efficiency of Layer 2 solutions and thus also make Ethereum more attractive. Practically, the benefits of Pectra will be experienced only gradually in the coming months, making the upgrade merely a routine update for the moment. For cryptocurrencies, new buyers come primarily via fresh ideas and narratives. Ethereum’s problem is that the impact of Pectra only plays out behind the curtain and doesn’t generate exciting stories on its own.
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