PANews reported on May 5 that according to CoinDesk, the Bollinger Band indicator of the ETH/BTC exchange rate has narrowed to the tightest level since June 2020, indicating that market volatility may be about to rise. Usually, the contraction of the Bollinger Band usually indicates that the price is about to break through, which may cause violent fluctuations. This technical signal appeared on the eve of Ethereum's upcoming Pectra upgrade on May 7. The upgrade aims to improve network scalability and validator operation efficiency, including increasing the maximum staking limit of a single validator from 32 ETH to 2048 ETH, and increasing the number of "blob" data units per block from 3 to a maximum of 9. In addition, Pectra will introduce the EVM object format (EOF) to optimize the structure of smart contracts.
Analysis firm Nansen pointed out that the Pectra upgrade will benefit the Layer 2 network the most, further consolidating Ethereum's position as the data availability layer by expanding blob capacity and strengthening its Rollup-centric expansion strategy. Areas such as DeFi, NFT and blockchain games may also benefit from it.
