Why MTU for ethernet is limited to 1500?

Well, MTU(maximum transmission unit) for ethernet is limited to 1500 only.That is because of following main two reasons:
1. When the frame size is too high then chances of signal at physical media being corrupted will be high.And, if there is even a single byte, entire frame needs to be re transmitted which aids overhead significantly.Also, large frame size delays the signal follow.

2. As per the Ethernet frame standard 802.3 there is 2 byte Length field and Ethernet frame standard II there is 2 byte Type field.Based on that numerical 2 byte field Ethernet standard being used will be distinguished.If numerical value is more than 1500 in decimal then it signifies Ethernet standard -II else it signifies  Ethernet standard 802.3.

In case the packet size is such that it exceeds the MTU then fragmentation needs to be done. 

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