Ethereum has been struggling to keep up with the rest of the market. However, its upcoming Pectra upgrade may be the catalyst it needs.
Ethereum’s (ETH) Pectra upgrade, scheduled for this week, has been on traders’ radar for some time. On Tuesday, May 6, Tracy Jin, COO of MEXC, shared her insights with crypto.news on the upgrade’s potential. Notably, Jin believes Ethereum has a unique opportunity to shift market sentiment.
“Bitcoin’s dominance currently sits at a year-high of 63,9% while altcoins continue to struggle to capture any sustained market momentum outside trend-based and speculative movements. With investor sentiment cautious and capital concentration increasing around Bitcoin, Ethereum’s Pectra upgrade offers a rare opportunity to flip the script in favour of altcoins,” Tracy Jin, MEXC
According to Jin, the upgrade will enable the next generation of Web3 innovations. This could help renew institutional interest and revitalize Ethereum’s ecosystem. With developer activity potentially increasing, Ethereum may be able to regain its dominant position in the altcoin market.
If the upgrade proceeds smoothly, Jin believes Ethereum could break out and reclaim the $2,200 level. This could even pave the way for a broader altcoin season. However, there are also risks, particularly if technical issues or delays arise.
“However, if the upgrade encounters technical issues or delays like previous rollouts, Ethereum risks losing further market ground to fast-rising ecosystems like Solana, and continuing its underwhelming market performance, potentially pushing the price below the $1,300 support zone,” Tracy Jin.
What will Pectra change for Ethereum?
Pectra is a combination of two upgrades, Prague and Electra, which introduce significant changes to Ethereum’s validator system. Notably, the upgrade will raise the effective validator stake from 32 ETH to 2,048 ETH. This will make it easier for large validators to spin up nodes, though it introduces some centralization risks.
In addition, the upgrade includes changes to how Ethereum wallets function, introducing features such as account abstraction. This will enhance what Ethereum smart contracts can do, while also improving network scalability.
