Thomas Daniels
According to analysts, Ethereum’s improvements have not yet had the immediate market impact required to support a positive rise, despite continuous improvements aimed at long-term blockchain adoption.
Since the 2022 Merge, Ethereum (ETH) has not been able to produce the expected market momentum and has struggled to match Bitcoin’s performance. The Singapore-based blockchain company Matrixport noted in a recent research note that the price of Ethereum has not been much impacted by its upgrades. These modifications seem to be a part of a longer-term, more comprehensive plan to increase blockchain use rather than sparking short-term rallies. Matrixport said, “These upgrades seem to be incremental steps.”
Competitive pressures and a lack of institutional interest
Market sentiment has been further dampened by Wall Street’s erratic desire for spot Ethereum exchange-traded funds (ETFs). Additionally, analysts point out that Ethereum has fallen behind new trends, with many investors and developers preferring less expensive blockchain networks for the introduction of meme coins and other initiatives.
Matrixport underlined that Ethereum is still having trouble establishing its value proposition. One encouraging aspect, though, is that even though TRON is a less expensive option, Tether (USDT) supply on Ethereum has surpassed that on TRON.
The Past Patterns of Ethereum and Its Possible Breakout
After falling 22% from its 2024 highs, Ethereum has outperformed Bitcoin this year and is still in a technical bear market. Nonetheless, some experts anticipate a possible bullish breakout in the upcoming weeks, with price targets as high as $5,000.
Ethereum is likewise favored by seasonal tendencies; since 2019, the cryptocurrency has consistently reported favorable February returns, with growth averaging 17% since 2017. The cryptocurrency community is growing more optimistic about a possible Ethereum rally, even though past success is no guarantee of future gains.
