Ethereum has been struggling in the wake of Bitcoin's recent rebound, managing only a modest gain of 0.5%, while Bitcoin itself has risen by 3%. Experts suggest that the upcoming Pectra upgrade could enhance Ethereum's fundamentals by improving network throughput and lowering transaction costs. Tracy Jin from MEXC believes that if successful, ETH could potentially reach prices between $6,000 and $7,000 this year. However, she warns that the upgrade may also increase volatility for Ethereum in the coming months as technical challenges often accompany major updates. Despite the overall bullish sentiment from the recent CPI report indicating potential interest rate cuts, institutional investors remain hesitant, as evidenced by substantial outflows from Ethereum ETFs. The Holesky testnet's recent finality marks progress toward the Pectra upgrade, although broader market conditions still reflect uncertainty about cryptocurrencies' immediate future.

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