diff --git a/specs/phase0/beacon-chain.md b/specs/phase0/beacon-chain.md
index acf098663..2e6c64be5 100644
--- a/specs/phase0/beacon-chain.md
+++ b/specs/phase0/beacon-chain.md
@@ -1402,8 +1402,11 @@ def process_final_updates(state: BeaconState) -> None:
     # Update effective balances with hysteresis
     for index, validator in enumerate(state.validators):
         balance = state.balances[index]
-        HALF_INCREMENT = EFFECTIVE_BALANCE_INCREMENT // 2
-        if balance < validator.effective_balance or validator.effective_balance + 3 * HALF_INCREMENT < balance:
+        QUARTER_INCREMENT = EFFECTIVE_BALANCE_INCREMENT // 4
+        if (
+            balance + QUARTER_INCREMENT < validator.effective_balance
+            or validator.effective_balance + 7 * QUARTER_INCREMENT < balance
+        ):
             validator.effective_balance = min(balance - balance % EFFECTIVE_BALANCE_INCREMENT, MAX_EFFECTIVE_BALANCE)
     # Reset slashings
     state.slashings[next_epoch % EPOCHS_PER_SLASHINGS_VECTOR] = Gwei(0)
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 58882a44f..b0d05427a 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
@@ -51,19 +51,22 @@ def test_effective_balance_hysteresis(spec, state):
     max = spec.MAX_EFFECTIVE_BALANCE
     min = spec.EJECTION_BALANCE
     inc = spec.EFFECTIVE_BALANCE_INCREMENT
-    half_inc = inc // 2
+    quar_inc = inc // 4
     cases = [
         (max, max, max, "as-is"),
-        (max, max - 1, max - inc, "round down, step lower"),
+        (max, max - 1, max, "round up"),
         (max, max + 1, max, "round down"),
+        (max, max - quar_inc, max, "lower balance, but not low enough"),
+        (max, max - quar_inc, max, "lower balance, step down"),
+        (max, max + (3 * quar_inc) + 1, max, "already at max, as is"),
         (max, max - inc, max - inc, "exactly 1 step lower"),
-        (max, max - inc - 1, max - (2 * inc), "just 1 over 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 + (half_inc * 3), min, "bigger balance, but not high enough"),
-        (min, min + (half_inc * 3) + 1, min + inc, "bigger balance, high enough, but small step"),
-        (min, min + (half_inc * 4) - 1, min + inc, "bigger balance, high enough, close to double step"),
-        (min, min + (half_inc * 4), min + (2 * inc), "exact two step balance increment"),
-        (min, min + (half_inc * 4) + 1, min + (2 * inc), "over two steps, round down"),
+        (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 * 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"),
     ]
     current_epoch = spec.get_current_epoch(state)
     for i, (pre_eff, bal, _, _) in enumerate(cases):