Thomas Daniels
Long-term selling pressure on Ether (ETH) is anticipated to lessen with Ethereum’s impending Pectra upgrade on March 5, which might pave the way for the next bullish stage of the 2025 cryptocurrency market cycle.
The price of Ethereum is struggling due to market volatility.
Despite the expected advantages of the update, Ether has underperformed Bitcoin. According to Cointelegraph Markets Pro, its price fell more than 32% in February, reaching a two-month low of $2,073 before rising to $2,245.
Even if Pectra might not cause an instant price spike, Gabriel Halm, a research analyst at IntoTheBlock, stressed that it is an important development for Ethereum’s ecosystem. The network’s competitive position will be improved by the upgrade, which will lower consensus overhead, improve layer-2 scalability, and boost capacity.
To further enable validators to compound revenues more effectively, Ethereum Improvement Proposal (EIP)-7251 will increase the validator staking maximum from 32 ETH to 2,048 ETH. Because validators might decide to reinvest awards instead of selling them, this could reduce the overall selling pressure.
Merlijn, a cryptocurrency trader In a March 1 X post, the trader hypothesized that Ether’s price drop is consistent with fractal patterns from the 2017 bull cycle, which could portend an impending rally.
The Ethereum Foundation Reorganizes in the Face of Increasing Competition
Concerns about competition from high-throughput chains and the growing dominance of layer-2 scaling solutions, which some claim are cannibalizing the Ethereum mainnet, have prompted Ethereum to restructure its leadership.
The Ethereum Foundation announced a change in leadership on March 1st, designating Tomasz Stańczak, CEO of Nethermind, and Hsiao-Wei Wang, a core Ethereum researcher, as co-directors of the organization. On March 17, they will take up their new positions.
The attempts to strengthen Ethereum’s place in the changing blockchain environment align with the leadership changes. Vitalik Buterin suggested ways to strengthen Ethereum’s sustainability in a blog post on January 23. These included encouraging layer-2 solutions to pay fees to the base layer and increasing the blob count to increase transaction capacity.
Ethereum hopes to improve scalability, boost investor trust, and provide the foundation for long-term price growth in the upcoming market cycle with its Pectra update and strategic leadership reorganization.
