- Ethereum has slumped to around US$1.9k, down over 15% in the past week and 52% annually, with 9 out of 10 recent trading days showing net negative flows for spot Ethereum ETFs.
- MEXC VP Tracy Jin suggests the upcoming Pectra upgrade could substantially increase Ethereum’s fundamentals, potentially driving ETH ($1,887.12) price to new highs.
- The Pectra upgrade is currently facing issues on testnet, with analysts suggesting disruptions are delaying the mainnet launch and could cause Ether to fall out of favour with builders.
- Industry observers warn that Pectra may face similar delays as previous Ethereum upgrades, potentially causing “increased volatility” for the second-largest blockchain.
While some cryptocurrencies are recovering from the recent crash, Ethereum is still struggling a little.
The price of ETH has fallen by over 15% in the past week. It looks even more concerning on the annual chart, where the second-largest coin has lost 52%.
Ethereum (ETH), annual chart, source: CoinMarketCapCurrently, ETH is trading for just around US$1,900 (AU ($9.91)$3,003), a long way from the all-time high of US$4,891 (AU$7,730) it set in June 2021.
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The price slump comes as recent leadership changes caused a stir in the Ether community and several days of net outflows of the spot Ethereum exchange-traded funds (ETFs).
In the last fortnight, the funds experienced net outflows on nine of ten trading days, with just one day of gains.
Data shows all spot Ether ETFs with outflows, source: TradingViewPectra Upgrade to The Rescue?
One catalyst that could potentially stop that downturn is a successful implantation of the much-anticipated Pectra upgrade.
According to Decrypt, citing Tracy Jin, who is the VP of crypto exchange MEXC, the upgrade could substantially increase Ethereum’s fundamentals.
Pectra, which is currently in testnet, is expected to increase available data space for Layer-2s twofold, which should decrease costs and enhance execution capabilities.
Jin said a successful Pectra launch could potentially mean new highs for the price of ETH.
Under favorable conditions, ETH may reach $6,000–7,000 this year.
Tracy Jin, MEXC VP Delays to Upgrade Could See More Volatility
However, in an emailed statement, Dom Harz, co-founder of BOB ($0.00) (Build on Bitcoin), told Crypto News Australia, that the upgrade is facing some issues, though this may not be the only challenge for Ether.
While the recent Sepolia testnet issues are disrupting the mainnet launch, they are far from Ethereum’s biggest problems. After all, this is exactly why testnets exist.
Dom Harz, co-founder of BOB Harz believes that, although Pectra would be an improvement, “the reality is that Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues”.
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Jin admitted that most of Ethereum’s past upgrades had issues and it’s possible Pectra faces similar delays – potentially causing “increased volatility” for the second-largest blockchain.
The post ETH Price Plummets as Testnet Issues Threaten Pectra Upgrade appeared first on Crypto News Australia.
