I am looking for steps to upgrade my current eclipse version(Mars) to latest version(Oxygen) because I have been using Masr for past long t
This might be useful.
https://wiki.eclipse.org/FAQ_How_do_I_upgrade_Eclipse_IDE%3F
There are some package structural changes from Eclipse Neon.
https://download.eclipse.org/releases/latest
and click OK. See also Eclipse Wiki - FAQ How do I upgrade Eclipse IDE?
I don't think updating from Update Site will update the eclipse.ini file: you need to fix it.
-startup
plugins/org.eclipse.equinox.launcher_1.4.0.v20161219-1356.jar
--launcher.library plugins/org.eclipse.equinox.launcher.win32.win32.x86_64_1.1.500.v20170531-1133
However, if you simply want to keep your preferences and your plugin, I suggest you to use Eclipse for that:
In Oxygen.1 (or the updated Eclipse), you can install feature/plugins
For the second option, you need to export it first on the previous Eclipse using File > Export > Install > Installed Software Items to File.
Note: the Eclipse directory store little configuration (at least, it store the known workspaces/update site). This link here might be of interest.