ETH Rebound Imminent? Can the Ethereum Pectra Upgrade Reignite Market Confidence

Original Author: @nobrainflip
Original Translation: zhouzhou, BlockBeats

Editor's Note: Ethereum is undergoing a major upgrade—Pectra, bringing improvements to transaction experience, smart wallets, staking mechanism, etc., focusing on user experience rather than technical aspects to enhance usability. Despite ETH's current underperformance compared to SOL and BTC, its historical rebound ability should not be ignored. ETH may experience a rapid rebound, and the upgrade provides an opportunity for its return to the mainstream. ETH's future performance is worth paying attention to, especially with the emergence of a new narrative.

Below is the original content (reorganized for better readability):

The largest upgrade in Ethereum's history just happened two hours ago.

Almost no one is talking about it now, but you will feel its impact, just like the price of $ETH.

This upgrade is called Pectra: What changes does it bring? Why is it significant? What is the next phase for ETH?

May 7th saw the most bullish update for ETH in crypto history—Pectra.

This upgrade is indeed powerful, bringing many long-awaited improvements. But can it solve Ethereum's biggest problem—price stagnation?

Let's break it down. This upgrade is today, May 7th, and its focus is—benefiting the average user. So, what specific changes will there be?

· Transaction Experience (TXs)

· Safe Updates in Security Mechanism

· Smart Wallets

· Staking Mechanism Optimization

Next, let's look at the details of each one:

Transactions (TXs)

No more tedious approval steps needed; swapping tokens can finally be done in a single transaction

Additionally, you can perform multiple operations in one transaction

Moreso, anyone can sponsor transaction fees, meaning you no longer need to hold ETH on every chain

Safe Updates

Introducing a new feature: Spending Control

This means your wallet can set a daily withdrawal limit

It will also bring a series of significant security upgrades to make transactions faster and cheaper

Smart Wallets

A key new feature is Wallet Recovery Mechanism

This mechanism is based on Account Abstraction technology

It can turn your wallet into a smart contract wallet with programmable logic, making it more flexible and secure

Staking

The validator staking limit will be increased from 32 ETH to 2048 ETH, making staking more flexible and efficient

It also supports faster deposit recognition and withdrawals through smart contracts

This means validators and stakers will have greater control over their assets

Overall, ETH's situation is still not optimistic, as its performance lags behind SOL and BTC.

In fact, ETH is currently at a cyclical low point, while BTC is nearing the $100,000 milestone.

But remember—no asset will rise or fall forever.

Nevertheless, do not easily give up on ETH, as it has the historical ability to rebound rapidly. We will definitely see a new narrative around Ethereum, just like the previous restaking and many other updates, and this narrative may even be the Pectra upgrade itself.

Remember, the pace of change in cryptocurrency is very rapid: popular trends come and go.

ETH may rebound quickly. That's why I've been continuing to accumulate ETH, and of course, I'm also keeping an eye on other assets like SOL/BTC. (By the way, I hold much more ETH than SOL right now because of the risk/reward ratio)

I think this upgrade has brought something to Ethereum that it has been lacking—usability. Eventually, they are no longer solely focused on smart contracts, scalability, and the ecosystem but are truly starting to focus on user experience—making users not feel tortured using MetaMask after trying Phantom.

This is why I believe this upgrade will be a quiet turning point for Ethereum to return to the mainstream. I do not think Ethereum is the "Nokia" of the crypto world — far from it. I am confident it will still have a significant rebound (even if it may not outperform SOL in the next year).

The current market conditions are very favorable: ETH/BTC is at historic lows, and market sentiment is extremely pessimistic.

You will be surprised to find that those spreading negative sentiment will quickly turn into believers during the first real rebound.

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