Crypto dealers aimed at taking advantage of a volatility increase should see Binance-Listed Ether-Bitcoin (ETH/BTC) ratios that could soon experience wild swings, according to a key indicator called Bollinger bands.

Bollinger bands are volatility tapes located two standard deviations above and below the 20-day simple sliding average of an asset price.

The so-called Bollinger Band-clamp occurs when the gang contracts close to the price, which suggests low volatility and a period of consolidation. The market typically builds energy under the pressure, which is eventually released in both directions, leading to a volatility explosion.

The Bollinger bands on the ETH-BTC diagram are now the tightest they have been since June 2020, according to TradingView.

The clamp indicates that Ether could soon experience increased volatility against BTC. Dealers look closely to see which way the price is breaking out of the gangs because the big move often happens in the same direction.

The Bullish signal of the volatility comes as Ethereum’s Pectra upgrade, aiming to improve blockchain’s scalability and validator operations and can sput market activity.

The upcoming upgrade, which is due 7 May, increases the maximum ETH a validator greatly from 32 ETH up to 2,048 ETH. It also raises the number of “blob” data units per day. Blocks from 3 to 6, which allows for a maximum of 9. In addition, the upgrade the transition to the EVM object format (EOF), a new structure designed to make smart contracts more efficient.

“Layer-2 networks are most beneficial to the most. By doubling clattering capacity and making call data more expensive, solidifying pectra clumps as the standard of posting Rollup data. This reinforces Ethereum’s role as a data availability layer and strengthens its Rollup-centered scaling strategy,” Coindesk.

“Defi will also see a lift,” the company noted, saying, NFTS and Blockchain games can benefit from the wider improvements.