Ethereum Spot Volume Flatlines Ahead of Pectra Upgrade—Is ETH Primed for a Volatility Surge?
Traders hit pause as Ethereum’s spot volume evaporates before the Pectra upgrade. Classic crypto behavior—everyone’s waiting to see if the upgrade delivers or becomes another ’buy the rumor, sell the news’ event.
Will ETH defy gravity or face the usual post-upgrade dump? The market’s holding its breath while institutional players quietly accumulate—because nothing says ’trust the process’ like hedge funds front-running retail yet again.
Here’s What ETH Price Technical Chart Shows
Ethereum has been on a steep correction since the beginning of 2025 and has been falling continuously over the past five months. The ETH-BTC pair has taken a severe beating and is preparing for major volatility ahead of the Pectra upgrade.
As of the technical charts, Ethereum is eyeing a potential breakout above the 50-day EMA resistance level. All eyes are currently on the FOMC meeting scheduled for Wednesday, and whether Fed Chair Jerome Powell will announce any rate cuts to fuel the rally.
#Ethereum is sitting right at the level of "resistance" that I pointed out last week, as well as the "50 Day EMA". Very critical levels!
Maybe Powell will have some good news for us on Wednesday that sends $Eth and the $Alts pumping.🤞
It’s time! 🚀 pic.twitter.com/mwLpZ0BYQE
— Anonymous | Crypto Predictions (@Crypto_Twittier) May 7, 2025
As per the Fed Watch tool by CME Group, there’s over a 95% chance that Powell will keep the Fed rates unchanged, which means that the altcoins might have to wait for some more time to see a potential rally ahead.
Ethereum Pectra Upgrade: What Will It Bring?
Investors are now waiting for the next major Ethereum mainnet upgrade Pectra, which combines two planned phases, Prague and Electra. It introduces 11 new Ethereum Improvement Proposals (EIPs) in what is considered Ethereum’s most significant update since early 2024.
A key highlight is EIP-7702, which enables regular Ethereum accounts to execute smart contract code, enhancing wallet functionality and flexibility. Another major change, EIP-7251, increases the staking limit for validators from 32 ETH to 2048 ETH, simplifying operations for larger stakers and improving scalability. Here’s a quick look at things that the Ethereum Pectra upgrade will bring.
- Smarter wallets: Enhanced support for batch transactions and gas-free operations.
- Expanded staking options: Validators can now stake anywhere from 32 to 2,048 ETH.
- Improved rollups: Faster and more cost-efficient scaling solutions.
- User-friendly enhancements: Simplifying Ethereum for broader accessibility.
- Future-ready infrastructure: Paving the way for major updates like Verkle Trees and EIP-4444.
: Streamlined codebase for smoother dApp development.
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