Key takeaways:
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ETH price rallied by 22% on May 8, however demand for spot ETH ETFs and derivatives stays muted.
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President Trump’s reversal on sure altcoins aligns with ETH’s renewed outlook.
Ether (ETH) posted a formidable 29% achieve between May 8 and May 9, possible marking the top of a 10-week bear market that bottomed out at $1,385 on April 9. This sharp transfer triggered the liquidation of over $400 million briefly (promote) ETH futures positions, suggesting that whales and market makers have been caught off guard.
Despite the surge, merchants have maintained a impartial stance in ETH derivatives. Whether this obvious lack of conviction displays a real development reversal or merely precedes one other check of the $2,000 stage stays to be seen.
The ETH futures premium has but to exceed the 5% threshold usually related to a impartial market, indicating that demand for leveraged bullish positions stays notably restricted. ETH’s continued underperformance—trailing the altcoin market capitalization by 17% in 2025—helps clarify the prevailing lack of investor confidence.
Some analysts interpret this as a gap for further brief masking, whereas others contend that Ethereum’s core fundamentals have but to enhance meaningfully.
Ethereum maintains management in decentralization and TVL
Irrespective of Ether’s price motion, current community upgrades have notably enhanced layer-2 scalability. More importantly, they’ve helped solidify Ethereum’s place because the main platform by way of decentralization and safety. This is mirrored in Ethereum’s whole worth locked (TVL), which stands at $64 billion. For comparability, the three largest direct opponents—Solana, BNB Chain, and Tron—collectively maintain a complete worth locked (TVL) of $22.3 billion.
The restricted demand for spot Ether exchange-traded funds (ETFs) has emerged as a key warning signal. Even Ether’s strongest single-day price efficiency in 4 years failed to forestall a 3rd consecutive day of web outflows, based on knowledge from Farside Investors. On May 8 alone, US-listed Ether spot ETFs skilled web outflows totaling $16 million.
The muted enthusiasm following Ether’s current bullish momentum will be partly attributed to the sharp 85% drop in Ethereum community charges from January to April. Reduced community exercise lowers total demand for ETH and negatively impacts web staking yields, because the protocol’s burn mechanism depends on competitors for knowledge processing.
ETH choices markets additionally supply perception into whether or not whales and market makers anticipate further draw back dangers.
Currently, put (promote) choices are buying and selling at comparable ranges to equal name (purchase) choices, indicating a impartial sentiment. This final result is considerably discouraging for Ether bulls. Nevertheless, Ether may regain market consideration after US President Donald Trump reversed his place following earlier public endorsements of competing altcoins.
Related: Ether clocks ‘insane’ 20% candle post Pectra — A turning point?
According to a Politico report revealed on May 8, President Trump felt he had been “used” and had severed ties with the lobbyist who reportedly proposed the concept of a strategic crypto reserve. While Trump’s social media publish on March 2 particularly talked about Solana (SOL), Cardano (ADA), and XRP, the next March 6 “Digital Asset Stockpile” Executive Order struck a way more reserved tone.
Despite the evident apathy in each the Ether derivatives market and spot ETF flows, a rally towards the $2,700 stage stays believable—particularly if investor sentiment shifts in response to the failed lobbying efforts undertaken by a few of Ethereum’s opponents.
This article is for normal info functions and isn’t supposed to be and shouldn’t be taken as authorized or funding recommendation. The views, ideas, and opinions expressed listed below are the creator’s alone and don’t essentially mirror or signify the views and opinions of Cointelegraph.
