In brief
- Ethereum's Pectra upgrade was successfully implemented but didn't boost ETH's price, which continues trading at $1,830, 40% lower than last year.
- Despite excitement around the upgrade's 11 improvement proposals, analysts note Ethereum updates often act as "sell the news" events, similar to what happened after "The Merge" in 2022.
- Markets appear more focused on the Federal Reserve's interest rate decision than on Ethereum's technical improvements, with CME FedWatch indicating a 95.6% chance rates will remain unchanged.
Ethereum's Pectra upgrade went live without a hitch—but it didn't serve as rocket fuel for ETH's price.
The world's second-largest cryptocurrency was trading sideways after the long-awaited code changes were finalized on Wednesday.
ETH is currently hovering at about $1,830, meaning it's continuing to trade 40% lower than it was this time last year.
It was a similar story after Ethereum completed "The Merge," and made the ambitious switch from proof of work to proof of stake consensus.
Back in September 2022, prices were flat in the immediate aftermath of that upgrade—but fell in the days that followed.
Analysts often point to Ethereum upgrades as "sell the news" events, as excitement doesn't always translate into buying pressure.
Pectra is designed to improve usability for ETH owners and validators alike, and consists of 11 separate Ethereum Improvement Proposals.
But a more pressing matter for the markets right now concerns today's meeting of the Federal Open Markets Committee.
President Donald Trump has been repeatedly lobbying for the Fed to cut interest rates, with Jerome Powell refusing to do so until inflation cools.
The latest data from the CME FedWatch tool suggests investors believe there's a 95.6% chance that the cost of borrowing will remain frozen.
Meanwhile, Ethereum co-founder Vitalik Buterin is betting that, in the long term, speeding up Ethereum blockchain and making its infrastructure as simple as Bitcoin could drive adoption.
While the likes of Bitcoin and Solana have hit new all-time highs this year, ETH has been languishing below a record price of $4,891 set in November 2021.
Edited by Stacy Elliott.
