Ethereum’s highly anticipated Pectra upgrade has entered its final testing phase on the Hoodi test network, marking a significant milestone before its official mainnet release. If all goes smoothly, developers anticipate Pectra will go live within the next 30 days, potentially fueling a surge in Ethereum’s price.
Pectra’s Final Test on Hoodi
The Hoodi testnet serves as the last of three test networks to trial the Pectra upgrade, following initial runs on Holesky and Sepolia, both of which encountered technical difficulties. The successful implementation of Pectra on Hoodi is crucial to ensuring a seamless transition to the Ethereum mainnet.
Aimed at enhancing Ethereum’s user experience, Pectra introduces smart contract functionality to wallets, allowing users to pay transaction fees with cryptocurrencies beyond Ether (ETH). This feature is expected to make Ethereum transactions more flexible and user-friendly.
Why Testnets Matter?
Testnets like Hoodi play a pivotal role in the blockchain development cycle by acting as safe environments where developers can detect and resolve issues before deploying upgrades on the main network. With Hoodi now live, Ethereum developers will monitor Pectra for 30 days, ensuring that all potential vulnerabilities are addressed before the upgrade is rolled out.
Ethereum Price Outlook
As Ethereum’s network upgrade garners attention, ETH’s price has also experienced notable movements. The cryptocurrency recently rebounded by nearly 7% from a key support level of $1,861, currently trading around $2,025.
If bullish momentum continues, Ethereum could aim for its March 7 peak of $2,258. However, for this to materialize, Ethereum’s Relative Strength Index (RSI) must surpass the 39 level and breach the neutral 50 mark.
Additionally, market sentiment appears to be improving, with Ethereum’s long/short ratio reaching 1.2287. This indicates that long positions outweigh shorts by 55%, reflecting strong buying interest that could further drive ETH’s upward momentum.
Also Read: Bitcoin & Ethereum on Track for Worst Q1 Since 2020 – No Rapid Recovery in Sight
As the Pectra upgrade nears its mainnet debut, all eyes remain on Ethereum’s network performance and price action, with investors anticipating a potential rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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