• Ethereum, the second-largest cryptocurrency, has dropped 9% in value today, despite the decline, on-chain data suggests that traders remain bullish.
  • The highly anticipated Pectra upgrade is now live on Ethereum’s Holesky testnet, aiming to enhance scalability despite encountering minor issues during its launch.

Ethereum’s latest protocol upgrade, Pectra, has recently gone live on the Holesky testnet, sparking significant enthusiasm among traders and analysts. This upgrade combines the Prague execution layer and the Electra consensus layer and introduces several enhancements aimed at improving the network.

Galaxy Researcher Christine Kim shared on X that the Pectra upgrade was deployed at slot 3710978, with an active validator count of 1,775,010. The Holesky testnet featured a Genesis Fork Version of 0x01017000 and had a total of 56,766,401 ETH staked. This large-scale deployment was expected to enhance Ethereum’s scalability, efficiency, and security.

Pectra is live on Holesky! pic.twitter.com/l2zAdlMvsp

— Christine Kim (@christine_dkim) February 24, 2025

Despite the upgrade’s launch, Ethereum developers encountered finalization issues, meaning that the blockchain was unable to reach a consensus on recent transactions. This flaw is particularly concerning for a network that relies on immutability and decentralized security. The primary cause appears to be the introduction of new Ethereum system contracts and the migration of deposit tracking from the Consensus Layer to the Execution Layer.

As we previously reported, Ethereum developers had set an early-to-mid-March 2025 target for the Pectra upgrade on the mainnet, aligning with the timeline established during the 203rd All Core Developers Execution (ACDE) call in January.

Why Analysts Are Betting Big on Ethereum

Following the implementation of the upgrade, Ethereum’s price has experienced notable fluctuations. As of February 25, Ethereum (ETH) is trading at $2,427.58, reflecting a decrease of 9.73% in the last 24 hours and 10.34% in the past week. Despite the price volatility, crypto analyst DrProfitCrypto has ignited enthusiasm within the Ethereum community with his latest X thread, where he outlines why he remains “insanely bullish” on ETH’s long-term trajectory. 

He points to four key factors that suggest Ethereum is on the verge of a major breakout.

The 200-week exponential moving average (EMA) has historically served as a crucial support level for Ethereum, with price rebounds occurring every time ETH touched this mark. Currently, ETH is only 18% away from this critical level, signaling that it is approaching a local bottom.

Ethereum has also been trading within an ascending channel for years and is now nearing its lower boundary, a historically prime entry zone. DrProfitCrypto emphasized,

The potential move towards 8-10k is approximately 200%, while the potential worst case is only 20%. Risk-reward ratio: Excellent! The best trade I found on this market!

Additionally, ETH has been forming a weekly ascending triangle since 2020, a pattern that often leads to explosive upward movements. Similar setups have triggered significant price surges in other assets, and this could be a major catalyst for Ethereum’s next leg up. “Each rejection brings ETH closer to breaking through, and I believe the next test will finally result in a breakout above $4K,” he stated.

Finally, a high liquidity zone exists at the $4,000 level, perfectly aligning with the expected breakout from both the ascending channel and the ascending triangle. DrProfitCrypto believes market makers will drive ETH through this zone, triggering a massive rally in the process.

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