diff --git a/specs/phase0/beacon-chain.md b/specs/phase0/beacon-chain.md
index 2e6c64be5..aa573ff16 100644
--- a/specs/phase0/beacon-chain.md
+++ b/specs/phase0/beacon-chain.md
@@ -1405,7 +1405,7 @@ def process_final_updates(state: BeaconState) -> None:
         QUARTER_INCREMENT = EFFECTIVE_BALANCE_INCREMENT // 4
         if (
             balance + QUARTER_INCREMENT < validator.effective_balance
-            or validator.effective_balance + 7 * QUARTER_INCREMENT < balance
+            or validator.effective_balance + 5 * QUARTER_INCREMENT < balance
         ):
             validator.effective_balance = min(balance - balance % EFFECTIVE_BALANCE_INCREMENT, MAX_EFFECTIVE_BALANCE)
     # Reset slashings
diff --git a/tests/core/pyspec/eth2spec/test/phase_0/epoch_processing/test_process_final_updates.py b/tests/core/pyspec/eth2spec/test/phase_0/epoch_processing/test_process_final_updates.py
index b0d05427a..36dae8fb7 100644
--- a/tests/core/pyspec/eth2spec/test/phase_0/epoch_processing/test_process_final_updates.py
+++ b/tests/core/pyspec/eth2spec/test/phase_0/epoch_processing/test_process_final_updates.py
@@ -62,8 +62,8 @@ def test_effective_balance_hysteresis(spec, state):
         (max, max - inc, max - inc, "exactly 1 step lower"),
         (max, max - inc - 1, max - (2 * inc), "past 1 step lower, double step"),
         (max, max - inc + 1, max - inc, "close to 1 step lower"),
-        (min, min + (quar_inc * 7), min, "bigger balance, but not high enough"),
-        (min, min + (quar_inc * 7) + 1, min + inc, "bigger balance, high enough, but small step"),
+        (min, min + (quar_inc * 5), min, "bigger balance, but not high enough"),
+        (min, min + (quar_inc * 5) + 1, min + inc, "bigger balance, high enough, but small step"),
         (min, min + (quar_inc * 8) - 1, min + inc, "bigger balance, high enough, close to double step"),
         (min, min + (quar_inc * 8), min + (2 * inc), "exact two step balance increment"),
         (min, min + (quar_inc * 8) + 1, min + (2 * inc), "over two steps, round down"),