Ethereum Hits $3,800: Pektra Effect
Ethereum, the world’s second largest cryptocurrency, is making waves again. After a week of steady gains, ETH has climbed above $3,800. Many analysts believe the upcoming Pectra upgrade is the main reason for this momentum. As the ecosystem grows, investors are looking at how this update will redefine decentralized applications and smart contracts.
What is Pectra Upgrade?
The Pectra upgrade marks an important milestone for Ethereum. Expected later this year, it combines several Ethereum Improvement Proposals (EIP) to increase network efficiency and wallet security.
An extraordinary feature is the EIP-3074. The proposal allows tasks such as smart contracts to be delegated to regular accounts. This change makes digital wallets more flexible. The developers hope this will simplify the user experience, and help newcomers navigate the blockchain more easily.
Institutional interest is increasing
Institutional demand also increases the price of ETH. Financial giants such as BlackRock and Fidelity are exploring ETH-based ETF products. Following the SEC approval of the Spot Bitcoin ETF, confidence in Ethereum as a long-term investment has increased. When large institutions enter the market, they bring capital and regulatory credibility. This change often signals the beginning of a major market cycle.
On-chain data shows strength
Data from Glassnode supports this bullish outlook. Ethereum’s currency balance has hit a two-year low. This suggests that investors are moving their ETH to “cold storage” for the long term. If demand remains high, this “supply shock” could push prices higher.