The upcoming Pictra upgrade to Ethereum is expected to make a paradigm shift, as it aims to significantly enhance the scalability and efficiency of the network. This upgrade comes in response to the growing demand for Ethereum services, especially in the DeFi sector. The Hoodie pilot network, launched on March 17, is the latest experiment aimed at improving the proposed improvements ahead of their rollout to the mainline, possibly by April 25.
Addressing technical challenges in previous versions
Pictra’s journey was not without obstacles. Previous test networks, especially Holsky, have faced technical difficulties such as increasing invalid blocks. The shift to the experimental Hoodie network highlights Ethereum’s commitment to overcoming these obstacles. Developers hope that improvements to Hoody will pave the way for seamless integration into mainstream network operations.
One of the most anticipated features of the Pictra upgrade is the ability for users to pay gas fees using multiple tokens, including stablecoins such as USDC. This flexibility is expected to attract more users by reducing barriers to entering transactions on the Ethereum network. In addition, third-party fee sponsorship will allow sponsors to cover gas charges on behalf of users, which could significantly reduce the financial burden, especially in environments with high transaction costs.
The update also offers a significant increase in betting limits for Ethereum validators, allowing them to deposit up to 2048 Ethereum, a significant rise from the previous limit of 32 Ethereum. This change not only increases the potential rewards for validators, but also enhances network security by encouraging more betting investments. Furthermore, the Pictra update plans to implement social recovery options, enabling users to regain access to their lost wallets through trusted contacts. This feature is critical given the challenges users face in managing private keys.
Ethereum pulls off exchanges amid selling pressure
The chain’s data revealed that about 845,000 ETH exited exchanges last week. Withdrawals are the highest weekly amount since December 2022. Outflows coincide with increasing selling pressure as cryptocurrency markets experience a downtrend.
Data shows more than a billion dollars of ETH exited exchanges last week
Coin market cap data revealed that Ethereum has seen increased volatility in the past month. The asset has lost more than 50% of its value since December 2024. The coin is currently trading at $2,073, down 4% in the last twenty-four hours. The volatility comes after President Trump announced that he would create a reserve for US cryptocurrencies and include Ethereum in it.
Investors claimed that Trump’s announcement left more uncertainty in the market. They remained cautious as Ethereum tried to reclaim the ground.
Data on the chain suggests that investors withdrew more than 330,000 from exchanges after the president’s announcement on Thursday. Outflows indicated that investors were moving Ethereum into private portfolios. Withdrawals indicate reduced selling pressure and potential long-term accumulation.
Analysis platform Trading view suggested that for a rally in Ethereum’s recovery, bulls should defend the $2,100 level. She added that Ethereum could see a strong recovery if market sentiment improves and outflows continue. The platform suggested that a breakout after the resistance level would signal renewed buying momentum. She added that an increase in the price of Ethereum would lead to a push towards higher prices.
The research analyst of crypto intelligence platform Nansen said that the movement of Ethereum supplies away from exchanges was a general bullish signal. The analyst commented on observing similar trends with Bitcoin. He added that the outflows indicate a natural shift towards self-guarding and cold storage.
Crypto flows slowly and sentiment falls
Although this indicates a slowdown in the pace of outflows, investor sentiment remains bearish as Bitcoin and Ethereum ETFs rise.
Bitcoin, Ethereum and other exchange-traded cryptocurrency products lost a total of $4.75 billion in four weeks, according to a new report from CoinShares. The category ended last week after seeing $876 million exit from the funds.
The bright side: It’s a marked improvement compared to the last week of February, when cryptocurrency funds saw $2.9 billion in outflows..=
“Although this indicates a slowdown in the pace of outflows, investor sentiment remains bearish,” writes James Butterfell.
Not surprisingly, U.S. investors are the most pessimistic, withdrawing $922 million from crypto funds, he wrote. President Donald Trump continues to wage a trade war with some of the country’s largest trading partners, such as Canada, Mexico and China.
The president also last week also fulfilled his promise to create a national reserve for Bitcoin and a stockpile of cryptocurrencies – but in a way that seems to have left many traders disappointed.
Both macro factors have played a destructive role in the crypto markets. The price of Bitcoin fell below $83,000 after falling 3.5% compared to this time yesterday. And the price of Ethereum is no better. It fell 2.1% in the last day and is currently trading at over $2,100.
Technical indicators indicate mixed signals regarding the next step of Ethereum. The Relative Strength Index (RSI) currently stands at 38.35. This reading is below the neutral 50 mark. This level indicates that Ethereum is oversold. However, it may also prepare for a trend reversal. If the RSI rises above 40-45, it could signal a shift towards bullish momentum.
