Ethereum Struggles amid Price Slump and Leadership Shifts

Amid the changes in leadership within Ethereum, and the outflow of amounts from the ETF, prices are expected to improve in cryptocurrencies due to the Pectra upgrade.

Ethereum (ETH) continues its trials as the second-largest cryptocurrency by market capital, with a fall over 15 percent during the past week alone. For the current market price of this cryptocurrency, it will probably strike a point around $1,900 (AU$3,003); this is a significant fall against the highest rate of $4,891 (AU$7,730) in June 2021. During the last year, Ethereum lost 52% of its value, making continued struggles for this digital asset.

The drop in price coincided with changes in leadership in the Ether community and net outflows from Ethereum exchange-traded funds (ETFs) for a few days. In fact, the previous nine out of ten trading days showed net outflows, an apparent lack of confidence among investors.

But the redeeming factor for ETH is that Pectra upgrade may soon be launched. As per Tracy Jin, alluding to her term as VP crypto of an exchange in MEXC, “it could uplift significantly the fundamentals of Ethereum due to increased available data space for Layer-2 solutions as slightly reducing costs and having a better execution capability.” This upgrade is still running on testnet, but successful launches would help ETH recover and possibly set new records.

However, there are potential issues with this bright future. Dom Harz, co-founder of BOB (Build on Bitcoin), has pointed out that while Pectra could improve Ethereum, it would not heal its wounds after a deep cut made by the competition. In addition, delays in the upgrade may lead to heightened volatility in the already volatile market for cryptocurrencies.