Ethereum (ETH) has dropped by 2.1% in the past 24 hours and currently sits at $1,784 per coin ahead of the implementation of the widely awaited Pectra upgrade.
Eleven major code changes will be introduced to the Ethereum mainnet through this revamp. They should supposedly make the blockchain more scalable, faster, and cheaper to stay competitive now that strong rivals like Solana (SOL) and Sui (SUI) have emerged.
Pectra will be launched on May 07, 2025, at epoch 364032 according to the Ethereum Foundation Blog.
0/ the biggest ethereum upgrade since the merge is coming.
and this time, you’ll feel it.
it’s called pectra and here’s why it matters
a guest thread by @binji_x ↓ pic.twitter.com/xhn1kt3qgG
— Ethereum.org (@ethereum) May 6, 2025
One interesting upgrade that Pecta introduces is the possibility of having a third party pay the required gas fees to transfer assets through the Ethereum network. This enables users to move assets from wallets that do not hold ETH at a certain point by letting the recipient cover the transaction fee.
Moreover, Pectra increases the amount of ETH that validators can stake to earn rewards for their participation in the consensus mechanism from 32 to 2048. This should attract larger and more efficient validators to the blockchain to increase its efficiency.
Finally, Pectra increases the number of blobs per Ethereum block from 6 to 9. This reduces network fees for layer-two blockchains like Arbitrum and should make the layer one more scalable and efficient as well.
All of these improvements should help Ethereum maintain its lead as the most decentralized and robust smart contracts platform in the space. However, can it result in significant gains for ETH?
ETH Could Rally to $2,400 If Everything Goes as Expected
Looking at the daily chart, we can see that ETH has climbed above its 21-day exponential moving average (EMA), as most cryptocurrencies have in the past week, as market sentiment has improved.
Apart from Pectra, this week introduces yet another variable that could result in significant price movement. Tomorrow, the Federal Open Market Committee (FOMC) convenes to make a decision on interest rates. The market’s consensus is that no changes will be made to the federal funds rate this week.
However, comments from Jerome Powell, the Chairman of the U.S. central bank, will be scrutinized to analyze the path that the institution will follow for what remains of the year, considering the significant changes that Trump’s hostile trade policies have put on the table.
It is worth noting that the U.S. economy shrunk during the first quarter of 2025 by 0.3% compared to the previous three months. This could influence the Fed to lower rates sooner than expected as well. In that case, prices could rally as higher liquidity results in higher asset prices in the financial markets in normal conditions.
The key support to watch for ETH ahead of Pectra would be the 21-day EMA and its latest valid low at $1,550. As long as these two support levels hold, this token’s outlook is still bullish.
Meanwhile, if Pectra goes great and the Fed does not rattle the markets, we could maybe see ETH retesting the 200-day EMA from below at around $2,400 in the mid-term.
As the market’s outlook keeps improving, a new crypto presale called BTC Bull Token (BTCBULL) offers passive income to Bitcoin investors as the price rises to new all-time highs.
BTC Bull Token (BTCBULL) Offers Innovative Milestone-Based Mechanism for Bitcoin Bulls
BTC Bull Token (BTCBULL) has raised nearly $5.4 million since its presale event was launched in February. Its innovative rewards mechanism includes token burns and direct airdrops of Bitcoin tokens tied to the price performance of the top crypto.
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The first milestone is due when Bitcoin rises to $125,000. At that point, a portion of BTCBULL will be burned, which should lead to a higher price for the token. Meanwhile, when BTC hits $150K, token holders will receive a direct airdrop of Bitcoin.
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