🔝Ethereum's Pectra upgrade could be a sentiment catalyst, but the market is "still sluggish"
Ethereum has been a bit "lukewarm" recently, and despite $500 million flowing into the spot Ethereum ETF, the current price of ETH remains lukewarm.
Matrixport analysts said that although ETH has given back almost all of its gains in the Trump election rally in November 2024, demand from long-term investors seems to be slowly increasing, especially members of the decentralized financial organization World Financial Liberty, which is associated with Trump, who have been adding to their ETH positions recently.
However, despite World Financial Liberty's large-scale purchase of Ethereum, market sentiment was still quite cautious before the Pectra upgrade. The Pectra upgrade is expected to be launched on the Holesky and Sepolia test networks in February and March, and the main network is expected to go online in April. In this regard, analysts said that this upgrade is different from the previous ones, and everyone does not expect large price fluctuations.
Matrixport also mentioned that if there is no obvious bullish catalyst, ETH prices may continue to struggle because Ethereum's market dominance has dropped to only 10%.
Not only Ethereum, but the entire altcoin market, including Dogecoin (DOGE), Ripple (XRP) and Solana, has recently faced downward pressure. At the same time, the current Fear and Greed Index has dropped to 43, the lowest level since October 2024, indicating that market panic is intensifying. Because from the historical cycle experience, fearful market sentiment often leads to a drop in cryptocurrency prices.
In addition, the altcoin seasonality index has also dropped from 47 at the beginning of the year to 32, indicating that the demand for altcoins is weaker than that for Bitcoin. Although Bitcoin demand is still stable, the decline in the altcoin index shows that investors are now more inclined to Bitcoin than other cryptocurrencies.
Have you also noticed the fluctuations in Ethereum prices and changes in the altcoin market? What do you think of Ethereum's future market performance? What are your expectations for the upcoming Pectra upgrade? Welcome to leave a message and discuss in the comment area!
