Could this be the catalyst for a new all-time high?

admin4 weeks ago

As the cryptocurrency markets continue to experience a period of price volatility and price volatility, with no clear path forward, all eyes are on the Pectra upgrade for the Ethereum (ETH) network.

This major upgrade, scheduled for Q1 2025, is gaining significant attention from bullish analysts who believe it could be the catalyst that takes Ethereum’s price to new heights.

Could this be a game changer for Ethereum?

According to decentralized finance (DeFi) researcher DeFi Ignas, the Pectra upgrade is increasing optimism about Ethereum’s prospects.

Recently Social Media Posts Reviewing this upcoming milestone for the network, Ignas claims that this update combines improvements from both Prague (execution layer) and Electra (consensus layer), and represents an overall advancement for the network.

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Ethereum has undergone several groundbreaking upgrades in recent years, including: Proof of Stake (PoS), introduction of ETH burn mechanism, implementation of data blob to reduce gas fees, etc.

However, researchers believe that the Pectra upgrade introduces new features, with account abstraction being a notable improvement.

Historically, the introduction of account abstraction has been limited by the complexity of interactions. Decentralized applications (dApp) Sometimes you miss out on opportunities like airdrops through your smart contract account.

With the introduction of EIP-7702, Externally Owned Accounts (EOAs) gain increased functionality similar to smart contract wallets, allowing for greater flexibility during transactions.

Notable benefits include batch processing of transactions and promotion of sponsorships. Transaction FeeAnd it bridges the gap between EOA and smart contract wallets by effectively managing permissions.

According to Ignas’ analysis, these developments will streamline fund management, automate processes, and improve dApp interactions, allowing for seamless operations like authorization and exchange within a single transaction, all without requiring users to own ETH directly.

Technological advances and cost reductions

The Pectra upgrade improves validator efficiency by allowing them to stake 40 ETH at a time, reducing operational costs and increasing rewards.

Additionally, advancements such as Peer Data Availability Sampling (PeerDAS) promise to reduce the cost of Layer 2 (L2) solutions by improving the data validation process.

The Ethereum Virtual Machine (EVM) is also significantly improved and simplified with 11 EIPs. Smart contract Development, cost reduction, and overall efficiency improvement.

According to Ignas, technical upgrades such as BLS12-381 curve pre-compilation, stateless clients, and proofs will further improve the Ethereum ecosystem for both developers and users, paving the way for a more seamless and user-friendly experience.

Ignas said the Pectra upgrade represents a significant leap forward for Ethereum, promising improved functionality, cost-effectiveness, and an improved user experience that will likely be driven along with the network. Ethereum Price Next year we will leap to a new level.

ETH Price

Despite this impending bullish upgrade to the network, there are still several months left until the same upgrade is introduced, as the ETH price has yet to recover the major levels lost earlier this month. Dropped it 25% increase to annual minimum of $2,110.

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At the time of writing, ETH is trading at $2,570, unchanged from Monday’s price but down about 3% over the seven-day period. Furthermore, ETH is still down 45% from its all-time high of $4,878 during the 2021 bull market.

While this upgrade is expected to lead to significant progress next year, it is imperative for bulls to reclaim the $2,600 level in the coming days to improve ETH’s outlook in the coming months and position themselves to retest the infamous $3,000 resistance wall.