The disciples of Jesus didn't understand that prophecy from Zechariah at first, or how Jesus had fulfilled it. Like you and me though, sometimes we can only see the truth of something when looking back. And the Holy Spirit will come later, personally to each person, and He will help them understand.
Jesus raising Lazarus from the dead had caused a lot of people to believe in Jesus. Whether they would stay believers is another question, but the sign points to something, and the people were starting to recognize it.
Meanwhile, St. John says the Pharisees realized that they weren't going to be able to keep a lid on the movement surrounding Jesus. Faith in Jesus wasn't just going to die off.
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