Crypto traders aiming to make money from a surge in volatility should watch the ether bitcoin (ETH/BTC) ratio listed on Binanence, according to an important indicator called the Bollinger Band.
The Bollinger Band is a volatility band that places two standard deviations above and below the simple 20-day moving average of the price of an asset.
The so-called Bollinger Band Squeeze occurs when the bands narrow down their prices, suggesting low volatility and duration of integration. The market usually builds energy during a squeeze, and is eventually released in either direction, leading to a volatility explosion.
According to TradingView, the Bollinger band on the ETH-BTC chart is the tightest since June 2020.
Squeezes indicate that ether can quickly experience an increase in volatility to BTC. Traders are often monitored carefully to see how much price breaks from the band, as big movements happen in the same direction.
The bullish signal of volatility comes as a Pectra upgrade for Ethereum. It aims to improve blockchain scalability and validator operations and to make market activity sp.
The imminent upgrade will significantly increase the maximum ETH that an active ETH from 32 ETH to 2,048 ETH can wager by May 7th. Additionally, the number of “BLOB” data units per block has been increased from 3 to 6, resulting in a maximum of 9. Additionally, the upgrade will begin a migration to EVM Object Format (EOF), a new structure designed to make smart contracts more efficient.
“Layer-2 networks loot to get the most profitable. By double the blob capacity and making call data more expensive, Pectra solidifies the blob as the standard for posting rollup data. This strengthens Ethereum’s role as a data availability layer and strengthens the rollup-centric scaling strategy.
“We’ll also see lifts in Defi,” the company says that NFTS and blockchain games could benefit from a wider range of improvements.