Ethereum’s Pectra upgrade is set for March 2025, while strong institutional inflows highlight the network’s continued dominance.
Ethereum developers have planned March 2025 as the target date for the long-awaited Pectra upgrade. During a core developer call on January 16, they outlined to release of updated client software in February 2025, followed by hard forks on Ethereum test networks Sepolia and Holesky. If all goes smoothly, the Pectra upgrade will go live on the Ethereum mainnet the following month. This comes as Ether ETH $3 037 24h volatility: 0.1% Market cap: $366.59 B Vol. 24h: $10.05 B navigates a slow price trajectory, with analysts predicting a major surge in its value by year-end.
Initially slated for late 2024, the Pectra upgrade faced delays as developers expanded its scope to include several Ethereum Improvement Proposals (EIPs). Key enhancements will focus on simplifying wallet user experiences, enabling account abstraction, increasing validator stake limits from 32 to 2,048 ETH, and refining deposit and exit mechanisms. These upgrades aim to address both the technical and user-facing aspects of the network, reinforcing Ethereum’s role as the leading blockchain for decentralized finance (DeFi).
In preparation, a temporary testnet named Mekong was launched in November 2024 to test the critical upgrades.
Ethereum Faces Major Competition
Despite Ethereum’s dominance with a total value locked (TVL) exceeding $68 billion, rival Solana has been making waves. Solana marked an 83% surge in developer growth and surpassed Ethereum for the first time since 2016. While Solana’s TVL remains lower at $9.6 billion, its efficiency and scalability have made it a compelling choice for new projects and investors.
However, Ethereum maintains strong institutional backing. As per the data by SoSoValue, spot Ether ETFs recorded their largest inflow of 2025 on January 16, with $166 million added. Grayscale Ethereum Mini Trust led this surge in inflows, contributing $565.87 million. These funds have collectively accumulated $2.64 billion in net inflows since their launch in July 2024, signaling robust investor confidence despite Ether’s modest price movements.
As of writing, Ether is trading at just above $3,400, reflecting a 2% daily increase and a 3.4% weekly uptick. A sustained close above the critical $4,000 resistance level could result in a major bullish momentum for the cryptocurrency. With a market cap of $411 billion, Ethereum remains the second-largest digital asset, though its 24-hour trading volume recently dipped by 2%.
Analyst Sees Promising Patterns
Crypto analyst Ali Martinez has noted Ether’s slow movement, likening the current formation to a “head-and-shoulders” pattern that previously led to significant price hikes. He predicted a consolidation phase for ETH in the short term, setting a $7,000 price target for the near future.
Meanwhile, data from IntoTheBlock reveals that long-term Ethereum holders have steadily increased their positions over the past year, contrasting with Bitcoin, where sell-offs among long-term holders have been observed.
The Pectra upgrade, combined with institutional inflows and growing confidence from long-term investors, positions Ethereum as a leader in the blockchain space.
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