The main dishes to remember:
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The price of the ETH rallied by 22% on May 8, but the demand for FNB and derivatives of ETH from Spot remains suffocated.
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President Trump’s reversal on certain Altcoins aligns with the renewed prospects of ETH.
Ether (ETH) posted an impressive gain of 29% between May 8 and 9, probably marking the end of a 10 -week bear market which reached the bottom at $ 1,385 on April 9. This net decision triggered the liquidation of more than $ 400 million in short ETH positions, which suggests that whales and market manufacturers have been caught.
Despite the sharp increase, traders maintained a neutral position in ETH derivatives. It remains to be seen this apparent lack of conviction reflects a real trend reversal or simply precedes another test of $ 2,000.
The ETH long -term bonus has not yet exceeded the 5% threshold generally associated with a neutral market, indicating that the demand for bull -up positions with leverage remains significantly limited. The continuous underperformance of ETH – drawing the market capitalization of Altcoin by 17% in 2025 – helps to explain the lack of confidence of the investors in force.
Some analysts interpret this as an opening for a new short coverage, while others argue that the main fundamentals of Ethereum have not yet improved.
Ethereum maintains leadership in decentralization and TVL
Whatever the action of Ether prices, recent network upgrades have notably improved the scalability of layer 2. More importantly, they have helped to consolidate Ethereum’s position as a main platform in terms of decentralization and security. This is reflected in the total value of locked Ethereum (TVL), which amounts to $ 64 billion. For comparison, the three largest direct competitors – Solana, BNB Chain and Tron – collectively hold a total locked value (TVL) of $ 22.3 billion.
The limited demand for funds negotiated by exchanges on ether (ETF) has become a key alert. According to Farside Investors data. Just on May 8, the FNB of ether points in the United States experienced net outings totaling $ 16 million.
Deaf enthusiasm after the recent Haussier enu Ether can be partly awarded to the sharp 85% drop in Ethereum network fees from January to April. Reducing the activity of the network reduces the overall demand for ETH and negatively affects net implementation yields, as the protocol burning mechanism is based on the processing of data.
ETH option markets also offer an overview of whether whales and market manufacturers anticipate other lower risks.
Currently, PUT options (sold) are negotiated at levels similar to equivalent call options (buy), indicating a neutral feeling. This result is somewhat discouraging for Ether bulls. However, Ether could withdraw market attention after US President Donald Trump has reversed his position as a result of previous public mentions of competing altcoins.
In relation: Ether “crazy” clocks at 20% post pectra candle – a turning point?
According to a politico report published on May 8, President Trump said he was “used” and had broken the links with the lobbyist who would have proposed the idea of a strategic cryptography reserve. While the publication on Trump’s social networks on March 2 specifically mentioned Solana (Sol), Cardano (ADA) and XRP, the executive decree following March 6 “Digital Asset Stockpile” took a much more reserved tone.
Despite the obvious apathy on the ether derivative market and the ETF spot flows, a rally to the $ 2,700 level remains plausible, especially if the feeling of investors changes in response to the failed lobbying efforts undertaken by some of the Ethereum competitors.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
