The largest altcoin Ethereum (ETH) is having its biggest day since 2021, picking up 20% daily gains to briefly lock in $2,448, a fresh two-month high. This comes just two days after the long awaited Pectra upgrade went live on Ethereumโs mainnet.
Whatโs Inside Pectra That Arouses ETH Fans?
The major technical upgrade for the top Proof of Stake (PoS) blockchain was officially activated at epoch 364032, precisely 10:05:11 UTC on May 7, 2025. While itโs true that the original Pectra launch date was set to March, the dev team encountered several hiccups on two mainnets, but later confirmed the bugs to be fixed on the Hoodi testnet.
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The key features inside Ethereumโs Spectra are account abstraction in accordance with the EIP-3074, aimed at making decentralized applications (dApps) more intuitive, as traditional crypto wallets get more flexible with customizable security and fee sponsorships.
Further on, Peer Data Availability Sampling (PeerDAS) lets dramatically reduce the verification costs for Ethereum (ETH) based Layer-2 roll-ups. Besides, the ETH Pectra upgrade offers a way higher validator limit, going from the regular stake cap of 32 Ethers to 2,048 ETH.ย
ETH Stakers Pile In Boosting Ethereum Price
Ethereum popped on a staking wave right ahead of the Pectra upgrade launch on the mainnet. According to the freshly conducted research by CryptoQuant, the ETH Pectra news back in February has amplified ETH staking from 33.78 million to 34.41 million.
Adding 627K Ethereum (ETH) crypto tokens in three months, this equals a hefty $1.52 hike in the altcoin’s staking. Prior to the Pectra news, this metric stood at negative values for a while, dropping from 34.88 million staked coins to 33.86 million between mid November 2024 and February 15, 2025.
While crypto connoisseurs are debating the next target for Ethereum (ETH) price between $3,700 and $4,000, short-sellers got hit with a tsunami of liquidations in the past 24 hours. One particular case, highlighted by LookOnChain, explored a major crypto player losing an eye-watering $4.77 million on a 25x-leveraged Ethereum short position in less than 8 hours.
On The Flipside
- Market watchers argue that Pectraโs 6,300% upped validator limit raises centralization risks if a few nodes take over 50%.
- On the other hand, validators running small ETH nodes are able to compound rewards more efficiently due to this flexibility.
Why This Matters
Steadily growing staking rate showcases the overall trust in the blockchain networkโs long-term value.
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