Ethereum’s price remains stable despite recent inflows from spot ETF investments and a rally related to Donald Trump’s election in November 2024.
Current Trends in the Ethereum Market
While short-term price movements are underwhelming, long-term demand is on the rise. Analysts at Matrixport have noted increased ETH purchases from the decentralized finance group World Financial Liberty, associated with President Donald Trump.
World Liberty Financial's Plans and Impact
World Liberty Financial plans to create a 'strategic reserve' with acquired altcoins, although its purpose is unclear. Market sentiment is cautious in anticipation of Ethereum’s Pectra upgrade, which is set to begin on the Holesky and Sepolia testnets in February and March, with a mainnet launch in April.
Expectations from Pectra Upgrade and Market Perception
Analysts believe the upgrade is unlikely to affect prices significantly. The Fear and Greed Index recently dropped to 35—its lowest level since October 2024—indicating growing market fear, historically associated with declining cryptocurrency prices.
Ethereum may continue to struggle without a strong bullish catalyst. Despite recent challenges, long-term prospects remain positive considering upcoming upgrades and strategic decisions.
