Analysis: The volatility indicator for ETH/BTC is tightening, and the market is focused on the trend of Ethereum before the Pectra upgrade.

PANews May 5 news, according to CoinDesk, the BOLL indicator for the ETH/BTC Exchange Rate has narrowed to its tightest level since June 2020, indicating that market volatility may soon rise. Typically, a contraction in the BOLL Band signals a potential price breakout, which could trigger significant fluctuations. This technical signal appears on the eve of Ethereum's Pectra upgrade scheduled for May 7. The upgrade aims to improve network scalability and validator operational efficiency, including increasing the maximum stake limit for a single validator from 32 ETH to 2048 ETH, and raising the number of "blob" data units per Block from 3 to up to 9. Additionally, Pectra will introduce the EVM Object Format (EOF) to optimize the structure of smart contracts. The analysis company Nansen pointed out that the Pectra upgrade will benefit Layer 2 networks the most, further consolidating Ethereum's position as a data availability layer by expanding blob capacity, strengthening its rollup-centric scaling strategy, and areas such as DeFi, NFTs, and blockchain gaming may also benefit from it.