Ethereum's Pectra Upgrade: Hope or Uncertainty in the Face of a Prolonged Downtrend
1min read Ethereum's prolonged downtrend has sparked debate among analysts, with the cryptocurrency's recent price drop raising questions about its future prospects. While the upcoming Pectra upgrade is expected to enhance network functionality, market sentiment surrounding Ether remains cautious.
Gabriel Halm, a research analyst at IntoTheBlock, believes that while the Pectra upgrade may not trigger an instant price bump, it represents a significant step forward in the ongoing improvements to the Ethereum ecosystem. However, the mixed opinions from the crypto industry highlight the uncertainty surrounding Ethereum's future.
Crypto analyst Louie has drawn a parallel between Ethereum's current bearish predicament and Bitcoin's situation in 2023, suggesting that both assets display comparable price structures, market sentiment, and catalysts. This could potentially allow ETH to "rhyme" with BTC's bullish breakout. However, market analyst Matthew Hyland has suggested that Ethereum might already be experiencing a bear market, with the cryptocurrency objectively in a 357-day downtrend.
The recent market slump has undoubtedly impacted investors, with data from IntoTheBlock indicating that only 26% of all addresses holding 36.92 million ETH remain profitable. A staggering 70% of addresses are "out of the money," with just 4.46% at breakeven. The technical outlook also reflects this downturn, as Ethereum's weekly close has occurred below a 980-day uptrend, dating back to previous cycle lows in June 2022.
Despite the downturn, Ethereum experienced a sharp rebound over the past 24 hours, rising 12% from recent lows at $1,996 to over $2,242. The relative strength index (RSI) has dropped to multi-year lows, consistently confirming the bearish nature of Ethereum's long-term market structure. However, this decline could imply a weakening of selling pressure in the short term, providing room for possible relief rallies.
In conclusion, while Ethereum has faced significant challenges and uncertainty in recent months, the implications of the Pectra upgrade and other market dynamics may play a crucial role in determining its future direction. Investors are advised to closely monitor these developments, as ETH's next moves may prove critical in shaping the landscape for the broader crypt 