Ethereum’s Pectra Upgrade: ETH Drop Below $2K Could Wipe Out $700M!

The post Ethereum’s Pectra Upgrade: ETH Drop Below $2K Could Wipe Out $700M! appeared first on Coinpedia Fintech News

Ethereum’s long-awaited Pectra upgrade has taken a big step forward with its launch on the Holesky testnet. This upgrade brings key improvements for validators, wallets, and layer-2 scaling. Developers can now test these features before they go live on the Ethereum mainnet.

Ethereum’s Pectra Upgrade In Progress

Ethereum developers have been working on Pectra for months, and its activation on Holesky at epoch 115,968 marks a crucial step. The Sepolia testnet already adopted the upgrade at epoch 222,464 on March 5. 

Now, with both test networks testing the changes, Ethereum developers are expected to decide on a mainnet launch date soon.

Meanwhile, Pectra follows the Dencun upgrade, which was released in March 2024 and helped lower transaction fees for layer-2 networks. Unlike Dencun, which focused on reducing costs, Pectra introduced new features to make Ethereum accounts more efficient and improve staking.

Key Features of Pectra Upgrade

Pectra is one of Ethereum’s biggest upgrades since 2024, bringing 11 major improvements known as Ethereum Improvement Proposals (EIPs). Among them, two stand out:

• EIP-7251: This proposal increases the maximum staking limit from 32 ETH to 2,048 ETH, allowing large validators to manage their stakes more efficiently.

• EIP-7702: This feature allows wallets to temporarily act as smart contracts, enabling users to pay gas fees with stablecoins, set up automatic payments, and recover wallets without needing seed phrases.

With these changes, Ethereum aims to provide a smoother experience for both validators and everyday users.

Ethereum Drop Below $2K Could Trigger $700M Liquidation!

While the Pectra upgrade promises major improvements, but its price remains stuck in consolidation. A breakout could happen if a strong rally occurs during the March 7 Crypto Summit, followed by a dip that forms a solid bottom.

For Ethereum to gain momentum, it needs to retest the $2,600 and $2,700 resistance levels and then face a pullback after the event. If ETH drops into the $1,600–$1,700 demand zone, it could trigger a buying opportunity, especially with the Relative Strength Index (RSI) nearing oversold levels.

Meanwhile, data from CoinGlass shows that a 2.6% dip below $2,154 would trigger $298 million in long liquidations. A bigger drop below $2,107 and $2,049 could wipe out $582 million and $705 million in positions. 

Overall, an 8% decline could lead to liquidations exceeding $700 million, adding more pressure to ETH’s price.