Kategorie: Ethereum News

Ethereum news about the ETH blockchain and its crypto ecosystem.

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Ethereum sees smart wallet activity spike as Pectra impact is felt

  • Ethereum’s Pectra upgrade, live since May 7, marks a major leap in staking, scalability, and smart wallet functionality.
  • Pectra slashed blob fees and doubled blob capacity, significantly enhancing Ethereum’s scalability and rollup efficiency.
  • ETH market cap soared 42% post-upgrade, fueled by investor confidence and rising futures market interest.

Ethereum’s long-awaited Pectra upgrade has already made its mark on the Proof-of-Stake network. 

Pectra – a portmanteau of Prague (execution layer) and Electra (consensus layer) upgrades intended to deliver a raft of significant improvements – has occupied an oversized presence in the Ethereum mindshare since going live on May 7.

And it’s little wonder given the way the upgrade’s been greeted by the wider community.

With TradFi institutions now better positioned to engage in native ETH staking, Pectra could be the greatest boon for the network since 2022’s The Merge.

Smart wallets take center stage  

One of the standout achievements of Pectra so far is the notable surge in smart wallet activity.

Driven by EIP-7702, which allows Externally Owned Accounts (EOAs) to temporarily delegate control to smart contracts, the rise has seen no fewer than 11,000 smart wallet authorizations recorded.

EIP-7702 has been wholeheartedly embraced by dApps and wallets, with benefits flowing to end users; post-Pectra, EOA wallets are able to authorize smart contracts to act in their stead, obviating the need to migrate to a new smart contract-based wallet and enabling features like transaction batching, gas sponsorship, and privilege de-escalation.

EOAs are just the tip of the iceberg. On the scalability front, blob fees have dropped to near-zero, slashing costs for rollup operations, while  EIP-7691 has seen blob capacity double – enhancing app scalability.

Pectra’s impact is being felt across the board.

Needless to say, market optimism has been fueled as a result, with ETH’s market cap soaring by 42% by May 12, reflecting renewed investor confidence.

The ETH futures market has seen a similar uptick, with open interest rising from $21.3 billion to $30.4 billion between May 8 and May 11, indicating heightened market activity and interest from traders. 

Staking infrastructure steps up  

Staking infrastructure provider P2P.org was among the first to fully support Pectra’s major features – including validator consolidation, auto-compounding, partial withdrawals, and operator switching – through a live, production-ready staking dApp and API.

Indeed, these key features were made operational within a week of the upgrade. 

In addition, the provider has launched a live calculator to help users compare their current staking setup with a consolidated one, empowering them to optimize their validator sets immediately and capitalize on Pectra’s many benefits.

Artemiy Parshakov, vice president of institutions at P2P.org, has called Pectra “a major unlock for institutional staking, especially with account abstraction paving the way for smarter, automated strategies.”

Notably, Pectra raises the staking limit from 32 ETH to 2,048 ETH, giving rise to the prospect of boosted rewards and streamlined validator management.

Ethereum’s steady evolution  

The tangible improvements bundled up in the Pectra upgrade have been welcomed by users, developers, and institutions alike, and the increased inflows into staking protocols tell only part of the story.

While these advancements have generated the lion’s share of coverage, the impact of Pectra is multifaceted, encompassing scalability, ease of use, and convenience. 

As Ethereum continues its methodical evolution, Pectra sets a strong foundation for future innovations, proving that slow and steady indeed wins the race in building lasting blockchain infrastructure.

The post Ethereum sees smart wallet activity spike as Pectra impact is felt appeared first on CoinJournal.

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Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google

  • Bitwise CIO makes a case for diversified crypto investment in different assets such as Bitcoin, Ethereum, Solana, and Avalanche.
  • He compares it to 2004, when Google was the leading internet company, though Netflix made the most money for investors in a 21-year period.
  • He equates Blockchain to the internet, saying the technology can be used for different purposes, like the internet.

Bitwise CIO Matt Hougan makes the case for diversified crypto investment, even as he hails Bitcoin as an important asset. 

Hougan said that while “Bitcoin is the king of crypto assets”, citing that it is the largest cryptocurrency, while having the most liquidity and being well known.

He says Bitcoin is the only digital asset that has a shot at being an important global currency. He said the asset is similar to digital gold. 

Bitwise’s CIO said that despite the important status of Bitcoin, it is wise to invest in other cryptocurrencies, making a comparison with the historical performance of internet companies. 

Google and Netflix

Hougan asks the investors to put themselves in 2004. 

Google was the leading internet company then, and investors would have been tempted to put money into Google as it is the “dominant player”, Hougan said. 

He points out that while Google has done exceptionally well in the next 21 years, gaining over 6300%, investing in other internet companies would have served investors well, as the internet is a “general purpose technology” with uses in retail, social media, and software.

Investing in companies such as Netflix, Amazon, and Salesforce, which are leading players in other verticals of the internet, would also go on to pay huge gains for investors. 

Netflix is the highest performing stock in this period with gains of over 50,000%. 

Amazon and Salesforce also rack up 10,000% and 7,000% gains, respectively, leaving Google as the worst-performing stock among this group during this time. 

Blockchain is similar to the Internet

Hougan compares Blockchain technology to the internet, saying the former is also a general-purpose technology with different crypto assets used for different purposes. 

“You can use a blockchain to create a better form of money (Bitcoin) or to create a programmable network for transferring real-world assets” (Ethereum, Solana, Avalanche).

You can build new types of applications (DeFi, DePin) or middleware that services other blockchains (Chainlink). 

You can also build traditional businesses that support the crypto economy (Coinbase, Circle, Marathon Digital)”, Hougan writes.

Power of passive investing

It is now a regular occurrence that passive funds are trumping actively managed funds. 

Hougan points this trend out.

“Over the past 20 years, actively managed US equity funds have underperformed their benchmark indexes 97% of the time”, he said. 

It is important to invest in the big picture rather than picking winners, Hougan writes. 

He adds that after studying history, it makes sense to own a basket of cryptocurrencies such as Bitcoin, Ethereum, Solana, and Chainlink. 

In the last 4 years, different crypto assets emerged as the number one performer in different years.

Hougan demonstrates this with data. He points out that it is impossible to predict cryptocurrency winners in 2030. 

The post Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google appeared first on CoinJournal.

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Ethereum (ETH) sees major uptick as Pectra upgrade goes live

  • The Ethereum stake limit has been raised to 2,048 ETH per validator as the Pectra upgrade goes live.
  • ETH price has jumped 7.3% to $1,966.
  • Historical May strength and undervaluation signal potential rebound.

Ethereum (ETH) has rallied sharply in the hours following the launch of its Pectra upgrade, marking the cryptocurrency’s strongest single-day gain in months.

Ethereum validator transformation with Pectra upgrade

The Pectra upgrade, activated on May 7, introduces a maximum stake limit increase to 2,048 ETH per validator, streamlining operations by reducing the need for multiple node setups.

By allowing validators to stake larger sums in a single account, Ethereum hopes to attract institutional participants and simplify the reward compounding process for networks of all sizes.

This major staking enhancement comes alongside eleven targeted Ethereum Improvement Proposals designed to reinforce network stability, scalability, and developer flexibility within decentralized applications.

Tim Beiko, overseeing core protocol meetings, described Pectra as the second-largest upgrade after the Merge, highlighting its potential to redefine staking economics and validator efficiency across the ecosystem.

Account abstraction, a standout feature of Pectra, enables users to pay transaction fees with tokens beyond ETH, promising greater user convenience but also introducing new security considerations.

Threat researcher Vladimir S. has cautioned users to verify message sources diligently and utilise wallets with advanced protections when interacting with account abstraction to prevent malicious contract exploits.

Ethereum’s development team emphasised a 24-hour monitoring period post-activation to identify and address any issues swiftly, reflecting a proactive stance on network safety and reliability.

Following the Dencun upgrade, which reduced Layer-2 costs, Pectra further cements Ethereum’s commitment to continuous improvement by tackling both infrastructural and user-facing challenges.

As validators begin to configure automatic reward compounding under the new limit, smaller stakeholders may benefit from seamless yield optimisation previously available only to larger operations.

The refined staking architecture under Pectra could lead to a more decentralised distribution of validating power, potentially mitigating concentration risks that have concerned community members.

Ethereum (ETH) price outlook

Data from Coinglass indicates that Ethereum has delivered an average return of nearly 28% in May since 2016, bolstering optimism that this month could reverse a five-month underperformance streak.

CryptoQuant’s valuation metrics highlight that ETH currently appears extremely undervalued compared to BTC, suggesting that market forces could soon realign the pair if demand picks up.

In the hours following the Pectra rollout, Ethereum has surged by 7.3%, reaching $1,966.11 and pushing its market cap above $237 billion amid elevated trading volumes exceeding $58 billion.

With Bitcoin dominance hovering near 63.9%, altcoin investors view the upgrade as a rare catalyst that could shift momentum back toward Ethereum and other Layer-1 networks.

Tracy Jin, COO of MEXC, has described Pectra as an opportunity to “flip the script in favour of altcoins,” underlining the market’s appetite for substantial protocol improvements.

Despite near-term upside, some analysts warn that supply pressure and flat on-chain activity could temper any rally if sustained demand fails to materialise over the coming weeks.

The post Ethereum (ETH) sees major uptick as Pectra upgrade goes live appeared first on CoinJournal.

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Dogecoin faces $500 million liquidation test as price eyes $0.2 recovery

  • Ichimoku and RSI indicators show no bullish momentum.
  • The coming days could determine whether DOGE stages a recovery or slides into a deeper correction.
  • DOGE lags behind Bitcoin and Ethereum amid broader altcoin pullback.

Dogecoin is navigating a volatile phase as its price hovers just above key support levels.

After hitting a local high near $0.2, DOGE has trended downward, raising fresh doubts about the memecoin’s strength in the current market.

While leading cryptocurrencies like Bitcoin and Ethereum continue to consolidate, Dogecoin has struggled to maintain momentum.

The asset risks erasing nearly all gains from the past 30 days unless it can break through critical technical barriers and absorb significant short liquidations, estimated to exceed $500 million.

The coming days could determine whether DOGE stages a recovery or slides into a deeper correction.

$0.165 zone is critical

The Dogecoin price has hovered near a key liquidation zone at $0.165, where leverage from traders has accumulated above $500 million. This threshold is seen as a pivotal point for a potential short squeeze.

Source: CoinMarketCap

To break higher, the price may need to dip below this level to trigger liquidations, potentially forcing out short positions.

Such a move could clear the way for a stronger rebound and extend the upward trend.

This could allow bulls to target a return to $0.18 and eventually retest $0.2.

Technical signals remain weak

Technically, Dogecoin’s outlook remains weak. After failing to stay above its ascending trend line, DOGE has experienced sustained downward pressure.

The Ichimoku cloud’s conversion line is acting as stiff resistance, and there’s no indication yet of a bullish crossover.

Meanwhile, the Stochastic RSI has reversed after testing average levels, underscoring the growing influence of bearish sentiment.

DOGE is expected to test support at $0.162, a level below the $0.164 liquidation zone.

However, failure to hold this support could deepen the drawdown and prompt traders to reassess the memecoin’s long-term viability.

$0.2 in 2025?

While Dogecoin reached as high as $0.2 earlier this year, the question now is whether it can sustain such levels or rise further in 2025.

For this to happen, the token must establish consistent upward momentum, clear resistance levels, and attract renewed investor interest.

This appears challenging given its current technical weakness and absence of strong bullish signals.

Still, market volatility could favour sharp movements in either direction. If the expected short squeeze plays out after testing $0.162 support, DOGE may rally back towards $0.18 and $0.2.

But unless broader market conditions improve and sentiment shifts decisively, reaching the $0.5 mark in 2025 appears increasingly unlikely based on current data.

The post Dogecoin faces $500 million liquidation test as price eyes $0.2 recovery appeared first on CoinJournal.

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Which way for Ethereum (ETH) price with the Pectra upgrade

  • Whales have increased Ethereum (ETH) holdings from 15.5M to 19M ahead of Pectra.
  • Pectra upgrade will enable account abstraction, validator scaling, and 2× blob capacity.
  • ETH price currently faces key resistance at $1,855 and support at $1,755.

Ethereum network stands on the brink of its transformative Pectra upgrade with mere hours to go, and ETH traders and HODLers alike are scanning on-chain and technical indicators for clues to the next directional move.

Ethereum whale accumulation signals conviction

As the Pectra upgrade approaches, Ethereum’s largest stakeholders, holding between 1,000 and 10,000 ETH, have quietly increased their reserves even as prices hovered near $1,800, reflecting a deliberate accumulation phase.

These addresses rose from 4,643 wallets in early December to 4,953 wallets today, underscoring a notable surge in cold-hard conviction amid unrealised losses.

On-chain data from Glassnode illustrates that these whales aren’t merely sitting on the sidelines but are actively stacking ETH in anticipation of the upgrade’s outcomes.

The steady climb in whale-held supply from 15.5 million ETH in March to 19.0 million ETH in early May emphasises their readiness to absorb any post-upgrade volatility.

Exchange reserves have oscillated between 19.1 and 19.8 million ETH through April, revealing an uneasy tug-of-war between selling pressure and accumulation tendencies.

Since November, there has been an uptick in the Estimated Leverage Ratio, indicating futures traders are positioning for a volatility event that traders often call a liquidity squeeze.

Should HODLers offload at cost-basis thresholds above $2,000, that same leverage could exacerbate downside spirals, turning the upgrade into a catalyst for correction.

Conversely, a sustained decline in exchange reserves after the fork would signal broad confidence and reduce systemic liquidity risks.

With Coinbase and other major exchanges pausing ETH deposits and withdrawals during the upgrade window, market access will briefly tighten, potentially amplifying moves.

Traders must therefore weigh the upside from fee savings and improved scalability against the risk of temporary network congestion or unforeseen protocol bugs.

Historical precedent shows that major forks can produce sharp, short-lived spikes in implied volatility, and Pectra’s scale makes it one of the most significant since the Merge.

Ultimately, whether Ethereum surges toward the $2,000 mark or retests the sub-$1,700 zone hinges on how swiftly the network re-stabilises post-upgrade.

ETH price analysis ahead of Pectra upgrade

Ether’s price action has formed a tight consolidation range between $1,755 and $1,855, with the 100 and 200 EMA lines converging toward a bullish crossover.

This compression of moving averages and narrowing Bollinger Bands signals the potential for a decisive breakout or breakdown once the Pectra code merges.

Hourly charts show the MACD teetering in the bearish zone even as RSI sits just below the neutral 50 line, suggesting momentum remains finely balanced.

Meanwhile, supply and demand zones tracked by IntoTheBlock reveal a heavier resistance wall between $1,805 and $1,857—holding nearly 5.85 million ETH—than the support zone below.

The promise and pitfalls of Pectra

By doubling blob capacity per block from three to six, Pectra promises significant relief for Layer-2 rollups and lower transaction fees for on-chain users.

With EIP-7702 paving the way for account abstraction, Ethereum wallets will gain features like gas fee sponsorship and transaction batching that could broaden mainstream adoption.

In addition, EIP-7251’s validator consolidation, raising the stake limit from 32 ETH to 2,048 ETH, offers institutional actors a more efficient entry point, yet raises centralisation concerns.

The transition toward the EVM Object Format marks a subtle but critical enhancement to contract execution efficiency that will lay the groundwork for future protocol improvements.

As the clock ticks down to the Pectra activation slot on May 7, Ethereum’s fate lies in the delicate interaction of on-chain fundamentals, technical momentum, and network health.

Should whales, HODLers, and institutions remain steadfast, the upgrade could light the fuse for a sustained rally, fulfilling long-awaited expectations.

If, however, the price fails to clear key resistance or if reserves swell again, traders may interpret Pectra as a hype cycle rather than a structural catalyst.

The post Which way for Ethereum (ETH) price with the Pectra upgrade appeared first on CoinJournal.