Key Takeaways:
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ETH prices rallied 22% on May 8, but demand for ETH ETFs and derivatives remains masked.
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President Trump's reversal to some Altcoins aligns with ETH's modified perspective.
Ether (Eth) Posted a wonderful 29% gain between May 8 and May 9, likely marked the end of a 10-week bear market dropping to $ 1,385 on April 9. This sharp move triggered the extermination of more than $ 400 million in short (seller) futures positions, suggesting that the whales and the manufacturers of the market were arrested.
Despite the climb, merchants maintain a neutral stance in ETH derivatives. If the apparent lack of convincing reflects a real recurrence or just preceded another $ 2,000 level test remains visible.
The Eth Futures Premium has not exceeded the 5% threshold usually associated with a neutral market, indicating that the demand for leveraged bullish positions remains limited. ETH's ongoing underperformance – monitoring the capitalization of the Altcoin market of 17% in 2025 – Helps explains the existing lack of confidence in the investor.
Some analysts interpret this as an opening for an additional short cover, while others argue that Ethereum's basic basis has not yet improved significantly.
Ethereum maintains leadership in decentralization and TVL
Irrespective of Ether price action, recent network upgrades are noticeably enhanced Layer-2 scalability. More importantly, they helped adopt Ethereum's position as the leading platform in terms of decentralization and security. This is reflected in the total amount locked (TVL) by Ethereum, which stands for $ 64 billion. For comparison, the three largest direct competitors – the Solana, BNB chain, and tron - coexist a total amount locked (TVL) of $ 22.3 billion.
Limited demand for Ether Exchange-Traded Funds (ETFS) spot appeared as a major warning sign. Even the strongest Ether price performance in four years has failed to avoid a third consecutive day of net outflows, according to data from Farside investors. Only on May 8, the US -listed ether listed in the US experienced net outflows worth $ 16 million.
Mute enthusiasm following Ether's recent bullish momentum may be slightly attributed to the sharp 85% collapse on Ethereum network fees from January to April. Decreased network activity lowers general demand for ETH and negatively affects net staking yields, as the protocol burning mechanism depends on the competition for data processing.
ETH options also offer markets on whether whales and market manufacturers expect further risks.
Currently, Put (Sell) options traded at similar levels to the corresponding call (buy) options, which expresses a neutral emotion. This outcome is a bit discouraged for the ether bulls. However, Ether could recover the attention of the market after US President Donald Trump reversed his position following earlier public endorsing of competing altcoins.
Related: Ether Clocks 'Insane' 20% Candle Post Pectra – a turning point?
According to a Politico report published on May 8, President Trump felt he was “used” and contacted the lobbyist who reportedly suggested the idea of a strategic crypto reserve. While Trump's social media post on March 2 specifically mentioned Solana (Sol), Cardano (ADA), and XRP, the following March 6 “Digital Asset Stockpile” executive order hit more reserved tones.
Despite the apparent apathy in both the Ether derivatives market and spots ETF flow, a rally towards $ 2,700 level remains possible – especially if investor sentiments change in response to failed lobbying efforts conducted by some of the opponents of Etheroum.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
