Ethereum Pectra Upgrade Set for May 7: What to Expect

Ethereum developers have officially announced a new deadline for the upcoming Pectra upgrade. The core developers made the final decision in a recent call after passing the third and last testnet implementation without any problems.

The upgrade, previously delayed by bugs encountered in previous test runs, had successfully run its third and last testnet implementation.

Key Improvements In The Ethereum Pectra Upgrade

The Pectra update has a bundle of 11 Ethereum Improvement Proposals (EIPs) intended to enhance the usability and effectiveness of the network. All the changes will be made at the same time to tackle a number of elements within the Ethereum environment.

One of the standout additions is adding “smart contract” functionality to wallets. This will make wallets simpler to use and recover. This will alleviate a widespread issue for Ethereum users who have previously had issues with wallet recovery and management options.

For validators in Ethereum, EIP-7251 introduces a dramatic shift in the staking process. In this proposal, the upper limit of ETH that can be staked will be raised from the current threshold of 32 ETH to a much higher value of 2,048 ETH.

This adjustment is tailor-made to enhance staking efficiency for those running several validators. It will enable them to organize their activities in a single node instead of operating separate nodes per validator.

Pectra’s Testing Journey And Implementation Timeline

The road to Pectra’s mainnet launch has been met with several challenges. The upgrade went through three separate testnet implementations before developers felt confident enough to set a mainnet launch date.

Even though the final test on the Hoodi testnet proceeded without any issues, the two earlier test runs encountered bugs that forced developers to delay the upgrade. These technical challenges brought forth more testing and tweaks prior to proceeding with the mainnet deployment plan.

In the call among the core developers, the group approved the May 7 target date following an assessment of the successful Hoodi testnet.

Now that the May 7 date has been finalized, users, developers, and validators all have a set schedule by which to ready themselves for the changes. Node operators and staking services in particular will need to update their software to remain compatible with the network once Pectra goes live.

Ethereum Struggles At $1,700

Ethereum’s price has been underperforming on all time frames leading up to the Pectra upgrade announcement. The data indicates ETH has dropped 6.2% over the last 24 hours, with deeper declines of 12.6% in the last seven days and 14.7% in the last 30 days. Ethereum price has also dropped 47.1% in the last 12 months.

Currently trading in the $1,700 range, ETH has not seen a positive market reaction to the upgrade news. Analysts have mixed views on Ethereum’s price outlook.

Ito Shimotsuma pointed to potential bullish signals, noting on X: “ETH is forming a bullish divergence on the 12H timeframe. RSI is slowly reaching neutral territory while price is going down. On top of that, a lot of shorts are building up, which is always a good signal if you hold an Altcoin.”

$ETH is forming a bullish divergence on the 12H timeframe.

RSI is slowly reaching neutral territory while price is going down.

On top of that, a lot of shorts are building up, which is always a good signal if you hold an Altcoin.

All we need to see is a little bit of strength… pic.twitter.com/qr8avm0p0a

— Ito Shimotsuma (@ItoShimotsuma) April 3, 2025

Taking a much more optimistic long-term view, analyst CryptoElites stated: “Ethereum to $10K by 2025—minimum! The path is clear, just stay focused and trust the process!”

The announcement is coming just after Trump announced the reciprocal tariffs, and the upgrade could provide a bullish outlook for ETH. Inflows into spot Bitcoin ETFs have surged once again as investors chose to look past the Trump reciprocal tariffs. As per the data, net inflows across all US ETFs for Bitcoin stood at $220 million yesterday.