Will Ethereum’s Pectra upgrade in 2025 spark a new bull run for ETH, or is it already priced in?

**Ethereum's Pectra upgrade is poised to contribute to a new bull run for ETH, but it is not yet fully priced in.** Here's why: 1. **Upgrade significance**: The Pectra upgrade is one of the most significant Ethereum upgrades since the network's transition to proof-of-stake in 2022. It merges the Prague execution layer with the Electra consensus layer and includes 11 Ethereum Improvement Proposals (EIPs) aimed at improving scalability, efficiency, and usability. 2. **Impact on usability and scalability**: The upgrade introduces account abstraction, which allows Externally Owned Accounts (EOAs) to function similarly to smart contract wallets, enhancing user experience by providing advanced features like transaction batching and fee sponsorship. It also increases validator stake limits, simplifies staking operations, and enhances Layer 2 scalability. 3. **Market sentiment and price reaction**: Despite the upgrade being announced, Ethereum's price was already more than doubled from April to July 2025, surging from about $1,600 to roughly $3,700. However, recent institutional investments and ETF inflows suggest increasing interest and potential further price appreciation. 4. **Potential for further growth**: The upgrade sets the stage for future scalability upgrades and optimizes network infrastructure, which could lead to increased network efficiency and security. This could attract more developers and users, driving up demand and potentially leading to a new bull run. 5. **Not yet fully priced in**: While the market has reacted positively to the upgrade, the full extent of its impact may not be reflected in current prices. The upgrade's benefits, such as enhanced staking capabilities and improved user experience, could lead to increased adoption and higher demand for ETH. In conclusion, while the market has already reacted positively to the Pectra upgrade, its full potential may not be priced in yet. The upgrade's benefits could lead to a new bull run for ETH, especially as institutional investors and ETFs continue to show interest. However, investors should remain cautious and consider the macroeconomic environment and competition from other cryptocurrencies, such as Solana, when assessing the potential for further price appreciation.