Ethereum Executes Pectra Upgrade Boosting Network Efficiency, Mixed Activity Response

Ethereum recently implemented the Pectra upgrade, its most comprehensive update since the 2022 Merge, introducing multiple Ethereum Improvement Proposals (EIPs) that improve staking, wallet functionality, and reduce Layer 2 fees. Key changes include raising the validator staking cap to 2,048 ETH, enabling wallets to function like smart contracts, and doubling blob capacity to lower rollup costs, enhancing user experience and institutional appeal. While these technical improvements have contributed to a 20% increase in Total Value Locked (TVL) and a 45% price surge over the past month, trading between $1,800 and $2,000, JPMorgan reports that network activity metrics like daily transactions and active addresses have not seen meaningful growth. This suggests a disconnect where institutional interest, reflected in futures market positioning, contrasts with subdued retail enthusiasm and limited spot ETF inflows. Ethereum now faces mixed market signals and technical resistance levels that will influence its price trajectory, while it continues to balance its identity as a scalable Layer 1 and Layer 2 ecosystem aimed at broad utility and decentralization.