The Pectra upgrade of Ethereum (#Pectra升级 ) successfully went live on May 7, 2025, marking one of the most significant network updates since the merger in 2022. This upgrade introduced 11 Ethereum Improvement Proposals (EIPs) aimed at enhancing the network's scalability, security, and user experience. Notably, EIP-7702 implements account abstraction, allowing regular wallets to temporarily execute smart contract functions, enabling users to recover lost private keys through social contacts and allowing third-party payment of gas fees. Additionally, improvements to the staking mechanism increased the ETH staking limit for individual validator nodes from 32 to 2048, reducing operational complexity for institutional stakers. In terms of Layer 2 scaling, the blob data capacity per block has doubled, expected to significantly lower transaction costs. Although the market reaction has been cautious, some analysts suggest that investors remain vigilant when signing transactions, overall, the Pectra upgrade lays a solid foundation for the long-term development of Ethereum. In the future, as new features are gradually implemented, it is expected to attract more users and developers, further expanding Ethereum's ecosystem. As Ethereum moves toward a more streamlined and efficient direction, the future market trends may become more positive, especially in the areas of Layer 2 solutions and decentralized applications (dApps). In summary, while investors focus on short-term volatility, they should also keep an eye on Ethereum's long-term technological advancements and market potential.