Analysis: ETH/BTC volatility indicators tighten, market focuses on Ethereum Pectra's pre upgrade trend

According to CoinDesk, the Bollinger Bands indicator of the ETH/BTC exchange rate has narrowed to its tightest level since June 2020, indicating that market volatility may be about to rise. Typically, a contraction in the Bollinger Bands indicates that prices are about to break through, which could trigger severe volatility. This technical signal appeared on the eve of Ethereum's upcoming Pectra upgrade on May 7th. The upgrade aims to improve network scalability and validator operational efficiency, including increasing the maximum staking limit for a single validator from 32 ETH to 2048 ETH, and increasing the number of "blob" data units per block from 3 to a maximum of 9. In addition, Pectra will introduce the EVM Object Format (EOF) to optimize the structure of smart contracts. Analysis company Nansen pointed out that the Pectra upgrade will benefit the Layer 2 network the most, further consolidating Ethereum's position as a data availability layer by expanding blob capacity, strengthening its Rollup centered scaling strategy, and other fields such as DeFi, NFT, and blockchain games may also benefit from it.