Ethereum's Twofold Challenge: Pectra Upgrade & ETF Outflow Pressures

Sepolia Testing to Proceed Despite Holesky Hiccups

Despite some issues when testing the Pectra upgrade on the Holesky test network, Ethereum developers are proceeding with testing it on the Sepolia network anyway. The initial issues on Holesky were due to a minor bug in how the system processed some addresses, but the developers spotted and resolved the bug very rapidly.

The developers will resume testing Pectra on Sepolia on 5 March 2025, as test networks are completely vital in detecting and addressing issues before updating the primary Ethereum network. Presuming everything works out in testing done on both networks, Pectra can expect to launch on the Ethereum main network as early as April 2025. Pectra will introduce some pleasant upgrades, such as improving wallets, enabling validators to hold bigger stakes, and enabling layer-2 systems to operate at faster speeds

Outflows Trigger Bearish Sentiment

Ethereum ETFs have been experiencing their longest sequence of outflows since November, with five consecutive days of net withdrawals. The ETFs experienced a huge $94.3 million net outflow on February 26, 2025, and then another $71.08 million on February 27, which resulted in Ethereum's price decline and show a general bearishness from investors.

Technical Analysis: Resistance and Support Levels for Ethereum

ETHUSD trades weak following the footsteps of BTC. Overall trend remains bearish as long as the resistance of $3000 remains intact. The key near-term resistance is at $2300 any breach above targets $2500/$2770/$3000/$3400/$3600/$3800/$4000. A robust bullish trend will only materialize above $4100.

Immediate support is around $2000. Any violation below will drag the price down to $1800. A breach below $1800 could see Ethereum plummet to $1450.

It is good to buy on dips around $2000 with a stop loss around $1800 for a TP of $2770.