In this round of altcoin frenzy, the gaming and AI sectors are taking turns to soar, while Ethereum, like a forgotten older brother, lies still on the ground. Many people believe ETH is oversold and due for a rebound, eagerly trying to catch the bottom in anticipation of a breakout—but the market refuses to follow the script, with funds all running to pump altcoins!
Why aren't funds supporting Ethereum? Two key reasons: 1. The market cap of ETH is too large; the amount of capital needed to pump it far exceeds that of altcoins, and whale traders and institutions prefer to engage with smaller, more easily controlled altcoins.
2. Although the inflation rate of ETH has decreased, the market still harbors concerns about its issuance mechanism, especially when compared to BTC's fixed supply; some large funds prefer to engage with smaller coins that have a stronger narrative.
But don't worry, the Prague upgrade on May 7th could be a turning point!
If this upgrade brings substantial performance improvements or deflationary expectations, funds may flow back into ETH. When the rebound starts, the magnitude could exceed expectations!
What should we do now?
If you already hold ETH, be patient and wait for the upgrade to take effect; don’t be swayed by the short-term frenzy of altcoins. If you want to position yourself, you can take a small position, but don’t go all-in; leave enough capital to respond to potential market shifts. Remember, the market always rotates; today’s crazy altcoins could be tomorrow's mess, while ETH, as the leader in public chains, still holds solid long-term value.
After the upgrade, will ETH stage a comeback or continue to lay flat? We shall see! May 7th will reveal the answer!