Key Takeaways:
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Traders remain cautious about ETH price action, but the optimistic sentiment begins to return.
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On May 7, upgrading Ethereum Pectra may boost investors, but ETH price action shows investors still hesitant to open new positions.
Ether (Ether) has traded below $ 1,900 since March, leading investors to ask if the failed attempt to recover $ 4,000 in December 2024 signed at the end of a period for the leading Altcoin. Concerns continue to be mounted as Derivatives market data show that professional entrepreneurs remain careful in the ETH price perspective.
Monthly futures should trade at a premium of 5% or more compared to place markets to pay longer periods of regulating, but this indicator is held under the neutral threshold.
Part of the lack of enthusiasm derived from the failure of the United States government, as Ether was classified along with other Altcoins in the “Digital Asset Stockpile” order of the Executive on March 6. The Trump administration decided that Bitcoin (BTC) was significant enough to include its own “strategic reserve. In the practical terms, the altcoins may have been holding governmental terms. maintain, but not newly obtained.
Ether market cap dropped under its top four rivals
In the first instance, in April 2025, the capitalization of the Ether market dropped under the combined value of its four largest competitors: Solana (Sol), BNB, Cardano (ADA), and Tron (TRX).
After the rebound from lows near $ 1,400, Ether's total capitalization now stands at $ 217 billion, which is sufficient to overcome the combined value of its four major competitors. However, unless the ether continues to release these rivals, the emotion is not likely to improve. Some traders have high hope for the upcoming upgrading of the 'Pectra' network, but current derivatives data do not reflect a bullish outlook.
Ether's denial is also in conjunction with the weak demand for the Ethereum spot exchange-traded fund (ETF) in the United States. Lack of institutional interest, despite the rising price of ETH from $ 2,400 to $ 4,000 between October and December 2024. In contrast, bitcoin ETFs have seen properties more than double, growing from $ 50 billion in October 2024 to $ 110 billion today.
Ethereum is leading TVL, but there is a catch
Although the Ethereum remains dominant in terms of the total amount locked (TVL), it struggles to match Solana's integrated user experience or Tron's dominance in the Stablecoin sector. Entrepreneurs appear to be not interested in the increased decentralization of Ethereum or improved security, especially for activities involving frequent deposits and removal, where layer-2 solutions provide limited benefits.
Lack of demand for leveraged bullish positions of ETH does not mean that professional traders expect further decline in price. If the whales and market manufacturers do not want to offer downside protection, it can be seen in the ETH options markets, which signifies the risk of market collapse.
Contrary to some expectations, place (sell) the options trade at levels similar to call options (buy). Noteworthy, professional entrepreneurs today are more comfortable with downside risks than two weeks ago. While ethical derivatives do not sign the strong bullish emotions, they also do not suggest that professional entrepreneurs are concerned about further denial of current price levels.
Related: 3 Ethereum Charts Flash Signal Last seen in 2017 when the ETH price rallied was 25,000%
There is a chance that the upcoming 'PECTRA' network upgrade may positively affect Ether's price. Scheduled for May 7, this event can renew the investor's interest in the project by closing the gap with some of its competitors. Staking mechanisms designed for institutional investors may result in more ETH locked in validator nodes, reducing the moving supply. Historically, Ethereum upgrades are often associated with short ETH price spikes.
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.
