$ETH

Simplified Technical Analysis – The Impact of the Pectra Upgrade on the Price of Ethereum.

What is the Pectra Upgrade?

The Pectra Upgrade is a major update to the Ethereum network, aimed at integrating a set of improvements at the transaction, storage, and staking mechanism levels. This upgrade aims to reduce costs, accelerate performance, and facilitate the use of Ethereum in decentralized applications.

Expected Impact on Price

1. Increased Demand:

As the network becomes faster, more efficient, and less expensive, user and developer interest in utilizing it increases, leading to an increase in demand for Ethereum.

2. Decreased Supply:

With the improvement of the staking mechanism, it is likely that more people will hold and stake Ethereum, reducing the supply in the market and putting upward pressure on the price.

3. Support for Positive Sentiment:

As successful updates are implemented on the network, this enhances investor confidence in Ethereum, encouraging them to increase their investments, leading to a gradual rise in price.

Future Expectations

If the upgrade is successfully implemented without any issues, it is expected that the price of Ethereum will experience a gradual rise in the second half of 2025, potentially reaching levels between $1,800 and $2,000 by the end of the year.

In the medium term, if confidence in the network continues and demand for Ethereum increases, the price could reach $2,500 to $3,000 by the end of 2025.