Ethereum Price Falls Despite Pectra L2 Upgrade

Despite a new Layer-2 upgrade, Ethereum’s price has declined to $1.7K. While the Pectra update offers benefits for institutional users and layer-2 scalability, the market remains subdued due to reduced on-chain activity. This contrasts with Ethereum’s historical performance, with recent downtrends exceeding -45% year-to-date. The question now is whether fee sponsorship models can revive user engagement and support the upgrade’s success.