Ethereum is seeing renewed investor confidence as traders anticipate the upcoming Pectra upgrade, scheduled for April 8. Derivatives data suggests a bullish outlook, with Ethereum’s seven-day implied volatility aligning with its six-month average at 66%, according to Derive.xyz founder Nick Forster. This signals steady interest, contrasting with Bitcoin’s lower implied volatility.

Forster noted a shift in sentiment, with a 30% probability of Ethereum surpassing $3,000 by the end of the quarter—up from 28% last week. The Pectra upgrade is expected to enhance network performance, accelerate transactions, and improve staking mechanics, further fueling optimism. Additionally, the Ethereum Foundation’s recent $120 million investment in DeFi projects underscores institutional interest and long-term growth potential.

Meanwhile, Solana faces potential headwinds. The failure of the Libra memecoin last Friday has raised concerns about the ecosystem. Additionally, a $2 billion token unlock—equivalent to 2% of Solana’s fully diluted value—could exert downward pressure on its price. Analysts estimate just a 10% chance of Solana exceeding $280 by quarter’s end, compared to a 20% likelihood of it falling below $170.

Adding to the uncertainty, Solana’s 2025 token unlock schedule reveals that over 15 million SOL tokens, worth more than $7 billion, will enter circulation within the next three months. The largest influx in March may impact Solana’s market value as early investors look to cash out.

With Ethereum’s upgrade on the horizon and Solana’s impending token unlock, the crypto market remains in flux, presenting both opportunities and risks for investors.