Stock market today: S&P 500 in weekly loss as trade war fears intensifyy
Ethereum stock saw renewed optimism as traders anticipated a boost from the upcoming Pectra upgrade in April. Derivatives data indicates growing confidence in Ethereum’s recovery, while Solana faces potential challenges.
Derivatives indicators suggest a bullish outlook for Ethereum as the market prepares for the Pectra upgrade, slated for April 8, The Block reported.
Derive.xyz founder Nick Forster highlighted a shift in investor sentiment, with Ethereum's seven-day implied volatility aligning with its six-month average at 66%, indicating a steady interest in the cryptocurrency. In contrast, Bitcoin's implied volatility is notably lower, suggesting less investor anticipation.
Forster emphasized that the derivatives market is showing signs of an "Ethereum road to recovery," with a 30% probability that Ethereum could surpass $3,000 by the end of the quarter, an increase from the 28% chance observed last week.
This uptick in optimism comes amid the dramatic downturn of Solana's Libra memecoin last Friday, which has drawn negative attention to the Solana ecosystem.
The Pectra upgrade is expected to bring significant improvements to Ethereum, including enhanced network performance, faster transactions, and improved staking mechanics.
Forster also pointed out the Ethereum Foundation's recent $120 million investment in DeFi projects as an indicator of the network's commitment to adoption and institutional interest.
Conversely, Forster predicts that Solana may face further challenges. The likelihood of Solana exceeding $280 by quarter's end is just 10%, with a 20% chance of falling below $170. An upcoming $2 billion token unlock, representing nearly 2% of Solana's fully diluted value, is expected to exert downward pressure on its price.
Last month, a user highlighted Solana's token unlock schedule for 2025, noting that over the next three months, more than 15 million SOL tokens worth over $7 billion will be released into the circulating supply.
This significant influx of tokens, particularly in March, could impact the market value of Solana as early investors gain the opportunity to sell their holdings.
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