Analysis: ETH/BTC volatility indicators tighten, and the market pays attention to the trend before the upgrade of Ethereum Pectra

PANews May 5th news, according to CoinDesk, the Bollinger Band indicator of the ETH/BTC exchange rate narrowed to its tightest level since June 2020, indicating that market volatility may be about to rise. Usually, the Bollinger Band shrinkage usually indicates that the price is about to break through and may trigger severe volatility. This technology signal appears on the eve of Ethereum’s upcoming Pectra upgrade on May 7. The upgrade aims to improve network scalability and validator operational efficiency, including increasing the maximum stake limit for a single validator from 32 ETH to 2048 ETH and increasing the number of "blob" data units per block from 3 to up to 9. In addition, Pectra will introduce the EVM object format (EOF) to optimize the smart contract structure.

Analytics company Nansen pointed out that the Pectra upgrade will benefit the Layer 2 network the most, further consolidate Ethereum’s position as the data availability layer by expanding blob capacity and strengthening its Rollup-centered expansion strategy. DeFi, NFT and blockchain gaming may also benefit from it.