Ethereum’s highly anticipated Pectra upgrade has achieved a key milestone, commencing its final testing phase on the Hoodi test network.
This event is a pivotal step towards the upgrade’s official deployment on the main Ethereum network.
Assuming successful completion of this stage, developers anticipate Pectra’s live launch within the next month.
The progression to Pectra‘s conclusive test phase has fueled speculation among analysts, who foresee a potential upward movement in the price of ETH.
Final Test Crucial After Previous Network Challenges
The Hoodi testnet represents the last of three testing environments designated to evaluate the Pectra upgrade.
Previous tests conducted on the Holesky and Sepolia networks encountered technical complications, thereby elevating the importance of a successful outcome on Hoodi.
Ethereum developers established the Hoodi network specifically to rigorously address identified bugs and guarantee the Ethereum network’s operational stability before the formal upgrade release.
A primary objective of Pectra is to enhance the Ethereum user experience by integrating smart contract capabilities directly into user wallets.
Wallet Innovation: Crypto Payments Beyond ETH
This integration promises to enable users to transact by covering fees using a broader spectrum of cryptocurrencies, moving beyond solely Ether (ETH) for transaction costs.
This advancement is expected to make Ethereum transactions more versatile and accessible for users.
The Vital Role of Test Networks in Blockchain Upgrades
Test networks, exemplified by Hoodi, serve as essential practice environments for major blockchain modifications.
Developers utilize these networks to identify and rectify potential bugs or vulnerabilities before implementing new updates on the live Ethereum mainnet, ensuring a smoother and more secure upgrade process.
If the Hoodi testing phase proceeds without incident, Pectra will undergo a 30-day monitoring period to ensure stability before its official launch to the public.
Ethereum Price Momentum and Market Sentiment
Concurrent with the escalating anticipation surrounding the network upgrade, Ethereum’s market value has also shown positive signals.
Over the preceding week, ETH experienced a recovery of nearly 7% from a support level of $1,861 and is currently trading around $2,025.
To sustain this positive trend and potentially challenge its recent peak of $2,258 observed on March 7th, Ethereum requires its Relative Strength Index (RSI) to advance beyond a value of 39 and subsequently surpass the neutral threshold of 50.
Further supporting a bullish outlook, prevailing market sentiment reveals improvements, with Ethereum’s long/short ratio reaching 1.2287.
This metric indicates that positions betting on price increases (long positions) are exceeding those betting on price decreases (short positions) by approximately 55%, suggesting significant buying interest that could bolster Ethereum’s ongoing upward trajectory.
Also Read: Ethereum Initiates New Test Network for Pectra Upgrade
