Ethereum: Strong Token Burn After Pectra Upgrade – Good Signal for ETH Price in the Future

After the official rollout of the Pectra network upgrade on May 7, the Ethereum network recorded a significant amount of ETH burned (burned). According to analyst Ted Pillows, this is a positive signal for the future of ETH, especially in the context of the market beginning to show supportive factors for a bullish trend. Token Burning – A Tool to Increase Scarcity The token burning mechanism helps reduce the total supply of ETH circulating in the market. According to basic economic models, when supply decreases while demand remains constant or increases, the value of the asset tends to rise. The Pectra upgrade has improved the operational mechanism of the Ethereum network, enhancing the efficiency of token burning by optimizing gas costs and transaction processing. This has caused the burn rate to increase sharply just a few days after implementation, which means that Ethereum is becoming scarcer over time – a positive factor for long-term investors. Other Growth Factors in 2025 Not only stopping at technical factors, Ted Pillows also mentioned a macro factor that could support the cryptocurrency market in the coming time: the loose monetary policy from the United States Federal Reserve (FED). It is expected that in the second half of 2025, the FED may reduce interest rates and return to the quantitative easing program (quantitative easing) to support economic growth. In the context of declining interest rates and additional liquidity being pumped into the market, investors tend to seek high-risk assets with significant profit potential, including cryptocurrencies like ETH. This can create a "risk-on" environment – a risk-seeking mentality that drives a strong wave of investment into the cryptocurrency market. The ETH Market Remains Stable After a Slight Adjustment At the time this article was published, the price of Ethereum remained above $2,534, despite the market experiencing a slight correction in the past few hours. This is a sign of the relative strength of ETH compared to other digital assets, and further reinforces analysts' arguments about the positive outlook in the medium and long term. Conclusion With the improved token burning mechanism, expectations for a loose monetary policy, and the stability of ETH prices in the short term, Ethereum is showing some notable positive signs. If these factors continue to develop as predicted, ETH could very well enter a strong bullish cycle in the second half of 2025.