Ethereum’s Pectra upgrade arrives on May 7 as scheduled

Ethereum (ETH) is preparing for its Pectra upgrade on May 7. The fork may bring more dynamics to the otherwise stagnant token price. 

The long-awaited Ethereum Pectra upgrade is coming on May 7, bringing changes to end-user experience, as well as network scalability. The upgrade is expected at block height 364032, with no signs of arriving later or earlier than scheduled. 

The biggest changes will be the introduction of smart wallets, increasing blob capacity, and the expansion of staking from 32 ETH to a maximum of 2,048 ETH. 

Pectra lands in under 24 hours – it's lowkey an underrated Ethereum hardfork

1️⃣7702: All 0x wallets become smart contact wallets

2️⃣7691: Blob capacity 2xs, from 3→6

3️⃣7251: Validators stake can range between 32-2,048 ETH

They're are more, but EIP7702 is the huge unlock👇

— David Hoffman (@TrustlessState) May 6, 2025

The upgrade arrives at a time when Ethereum blobs are seeing increased usage, burning between 84 and 100 ETH in 24 hours. Blob usage is currently the leading activity on Ethereum based on fee burns. The upgrade will further bring down the costs of L2 chains while also boosting native Ethereum-based activities. 

The upgrade will target both large-scale holders and end users with smart wallets, batch transactions, and smart sessions, pointed out Pedro Gomes, builder of WalletConnect. The upgrade opens the doors to personal smart wallets and cheaper usage of Web3 services with sponsored gas.

The upgrade will cause temporary delays in ETH deposits and withdrawals for some services. Crypto.com will support the upgrade and will shut down deposits and withdrawals around the predetermined block height to ensure network stability. The upgrade comes at a time when Ethereum active addresses have fallen as low as 326K in 24 hours, lagging behind Solana and L2 chains.

Previously, Pectra was expected as late as June, but the readiness of nodes pushed the upgrade earlier. Pectra is part of the effort to make Ethereum more scalable and not as reliant on L2 chains. The end goal is to return on-chain activity to Ethereum while retaining the capabilities of L2 chains. 

ETH slumps before Pectra launch

Pectra has been widely considered a potential trigger for the price of ETH. However, ETH has rarely rallied after upgrades, and the news kept failing to cause a rally. 

Just as Pectra was announced, ETH sank again under $1,800. ETH traded at $1,770.13, with open interest under $10B. 

ETH is at a crossroads, with a mix of accumulation and panic-selling for a loss. The token is seen as risky for another correction, preventing traders from risking leveraged positions. The Pectra upgrade is one of the factors behind the most optimistic predictions for an ETH rally. 

The potential downside of ETH is also pushing DeFi protocols, where loans are starting at a lower liquidation price in the $1,400 range. Liquidation levels in DeFi go as low as $863, signaling relatively low confidence in the ability of ETH to hold a reliable price range. 

The overall sentiment on Ethereum means Pectra may not move the price based on the most bullish predictions. However, the upgrade is seen as one of the potential factors to stop the five-month slide of ETH.

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