Ethereum’s upcoming Pectra upgrade may not be enough to spark a price rally as market sentiment stays lukewarm despite increased institutional investments.
Ethereum Struggles Despite ETF Inflows
Ethereum has seen $500 million in inflows into spot Ethereum ETFs, but price movement remains limited. Analysts at Matrixport highlight growing demand from long-term investors, including members of World Financial Liberty, a DeFi group linked to Donald Trump.
Pectra Upgrade and Market Uncertainty
Ethereum’s Pectra upgrade is set for Holesky and Sepolia testnets in February and March, with a mainnet launch in April. Unlike past upgrades, analysts predict little impact on price due to lack of a strong bullish catalyst.
Altcoin Market Faces Pressure
The Crypto Fear & Greed Index has dropped to 35, the lowest since October 2024, signaling growing fear in the market. The Altcoin Season Index has also declined from 47 to 33, showing weaker demand for altcoins as investors shift focus to Bitcoin.
Ethereum’s Market Dominance Falls
Ethereum’s market dominance has declined to 10%, reflecting investor caution. With Bitcoin holding steady, the broader altcoin market, including Solana, Dogecoin, and XRP, continues to face downward pressure.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
