Ethereum Faces Major Challenges: Petra Upgrade and ETF Losses Impact Price Development
The cryptocurrency Ethereum is currently navigating through a series of challenges that are affecting its market performance. According to Coin Kurier, the upcoming Petra upgrade poses significant technical hurdles for the network. This complex update will be divided into two separate hard forks, with the first phase expected to commence as early as February next year. Key improvements such as EIP 7702 aim to enhance smart contract security.
In addition to these technological updates, Ethereum investors have been disheartened by recent losses in ETH-index funds. As reported by BTC-ECHO, these funds suffered a loss of $104 million within weeks after their launch, leading to a decline in Ether's price by approximately 31 percent since trading began. High fees associated with products like the Grayscale Ethereum Trust have further deterred potential investors.
Moreover, Wallstreet:online highlights how Ethereum has lagged behind Bitcoin despite an overall upward trend in the crypto market last week. The disparity between spot ETFs' inflows for Bitcoin compared to those for Ethereum could explain this sluggishness.
This situation raises questions about whether there might be another shift favoring altcoins soon. While previous bull runs often saw capital flowing towards smaller coins during what was known as "Altcoin Season," institutional investor behavior suggests otherwise this time around—though long-term forecasts remain optimistic according to analysis from sources including 99Bitcoins.
Sources:
