Summary
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Ethereum’s significant Pectra upgrade is undergoing its final testing phase on the Hoodi test network, a crucial step before its anticipated mainnet launch within the next 30 days, with developers aiming to enhance user experience by enabling crypto payments beyond just ETH for transaction fees.
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Testnets like Hoodi are essential for identifying and resolving bugs in blockchain upgrades before mainnet deployment; successful testing of Pectra is critical and will be followed by a 30-day monitoring period before official implementation.
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Amidst upgrade anticipation, Ethereum’s price is showing positive momentum, recently rebounding and targeting higher price levels; market indicators suggest growing buying interest that could support continued upward price movement for ETH, contingent on positive RSI developments.
The eagerly awaited Pectra upgrade for the Ethereum network has reached a crucial milestone, entering its last phase of testing on the Hoodi test network.
This marks a pivotal stage in the development process, preceding the official activation of the upgrade on Ethereum’s primary network.
Developers anticipate Pectra’s live deployment within the next month if these final trials proceed without issue.
With this critical testing phase now active, industry observers suggest that ETH’s value could experience a notable upward trend.
Hoodi Network Hosts Pectra’s Ultimate Trial
The Hoodi testnet holds the distinction of being the final of three experimental networks chosen to assess the Pectra upgrade.
Previous tests conducted on the Holesky and Sepolia networks encountered technical glitches, making the success of this concluding Hoodi test paramount.
To ensure a robust and bug-free rollout for the upgrade, Ethereum’s development team specifically created the Hoodi environment.
The primary objective of Pectra is to enhance the Ethereum user experience by equipping digital wallets with smart contract capabilities.
This advancement promises to empower users to settle transaction expenses using a variety of cryptocurrencies beyond just Ether (ETH), thus providing greater flexibility and convenience in transaction processing.
The Indispensable Role of Test Networks
Testnets, like Hoodi, serve as vital experimental spaces for major blockchain enhancements.
Developers utilize these platforms to meticulously identify and rectify any software bugs, thereby proactively preventing potential complications before implementing significant updates on the live Ethereum network.
Should the Hoodi test execution proceed smoothly, Pectra’s performance will undergo rigorous observation for 30 days before its official introduction to the main Ethereum ecosystem.
Ethereum’s Market Position: Price Analysis
Concurrently with the growing interest in the network upgrade, Ethereum’s price performance is also attracting considerable attention.
Over the past week, ETH demonstrated resilience, bouncing back by almost 7% from a support level of $1,861 and currently trading around $2,025.
If this positive momentum persists, Ethereum might realistically target its peak price from March 7th, reaching $2,258.
However, achieving this milestone depends on the Relative Strength Index (RSI) breaking through the 39 levels and surpassing the neutral threshold of 50.
Adding to the optimistic outlook, market sentiment is showing signs of improvement.
Ethereum’s long/short ratio has climbed to 1.2287, revealing that long positions are significantly outnumbering short positions by approximately 55%.
This pronounced buying activity indicates robust investor confidence, potentially providing the impetus for Ethereum to sustain its current upward price trajectory.
Also Read: Ethereum Whales Accumulate as Price Aims for $2.2K Recovery
Large Ether holders, known as whales, are accumulating ETH, indicating an upcoming Ethereum rally. However, for this rally to gain momentum, ETH needs to surpass the $2,200 mark to re-establish its “macro range.” The market downtrend and reversal points have significantly dropped, and analysts suggest reclaiming the $2,200 level is crucial for reversing the current downtrend. Despite short-term volatility, long-term projections for Ether in 2025 remain optimistic, with firms like… [Read More]
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