Ethereum price greenlit for further upside after surprise 29% ETH rally

Key takeaways:

• ETH terms rallied by 22% connected May 8, but request for spot ETH ETFs and derivatives remains muted. 

• President Trump’s reversal connected definite altcoins aligns with ETH’s renewed outlook. 

Ether (ETH) posted an awesome 29% summation betwixt May 8 and May 9, apt marking the extremity of a 10-week carnivore marketplace that bottomed retired astatine $1,385 connected April 9. This crisp determination triggered the liquidation of implicit $400 cardinal successful abbreviated (sell) ETH futures positions, suggesting that whales and marketplace makers were caught disconnected guard.

Despite the surge, traders person maintained a neutral stance successful ETH derivatives. Whether this evident deficiency of condemnation reflects a genuine inclination reversal oregon simply precedes different trial of the $2,000 level remains to beryllium seen.

Ether 3-month futures annualized premium. Source: laevitas.ch

The ETH futures premium has yet to transcend the 5% threshold typically associated with a neutral market, indicating that request for leveraged bullish positions remains notably limited. ETH's continued underperformance—trailing the altcoin marketplace capitalization by 17% successful 2025—helps explicate the prevailing deficiency of capitalist confidence.

Some analysts construe this arsenic an opening for further abbreviated covering, portion others contend that Ethereum's halfway fundamentals person yet to amended meaningfully.

Ethereum maintains enactment successful decentralization and TVL

Irrespective of Ether’s terms action, caller web upgrades person notably enhanced layer-2 scalability. More importantly, they person helped solidify Ethereum’s presumption arsenic the starring level successful presumption of decentralization and security. This is reflected successful Ethereum’s full worth locked (TVL), which stands astatine $64 billion. For comparison, the 3 largest nonstop competitors—Solana, BNB Chain, and Tron—collectively clasp a full worth locked (TVL) of $22.3 billion. 

The constricted request for spot Ether exchange-traded funds (ETFs) has emerged arsenic a cardinal informing sign. Even Ether’s strongest single-day terms show successful 4 years failed to forestall a 3rd consecutive time of nett outflows, according to information from Farside Investors. On May 8 alone, US-listed Ether spot ETFs experienced nett outflows totaling $16 million.

Ether US-listed spot ETFs' regular nett flows, USD million. Source: Farside Investors

The muted enthusiasm pursuing Ether’s caller bullish momentum tin beryllium partially attributed to the crisp 85% driblet successful Ethereum web fees from January to April. Reduced web enactment lowers wide request for ETH and negatively affects nett staking yields, arsenic the protocol’s pain mechanics relies connected contention for information processing.

ETH options markets besides connection penetration into whether whales and marketplace makers expect further downside risks. 

Deribit 30-day ETH options delta skew (put-call). Source: Laevitas.ch

Currently, enactment (sell) options are trading astatine akin levels to equivalent telephone (buy) options, indicating a neutral sentiment. This result is somewhat discouraging for Ether bulls. Nevertheless, Ether could regain marketplace attraction aft US President Donald Trump reversed his presumption pursuing earlier nationalist endorsements of competing altcoins.

Related: Ether clocks ‘insane’ 20% candle station Pectra — A turning point?

According to a Politico study published connected May 8, President Trump felt helium had been “used” and had severed ties with the lobbyist who reportedly projected the thought of a strategical crypto reserve. While Trump’s societal media station connected March 2 specifically mentioned Solana (SOL), Cardano (ADA), and XRP, the consequent March 6 “Digital Asset Stockpile” Executive Order struck a overmuch much reserved tone.

Despite the evident apathy successful some the Ether derivatives marketplace and spot ETF flows, a rally toward the $2,700 level remains plausible—especially if capitalist sentiment shifts successful effect to the failed lobbying efforts undertaken by immoderate of Ethereum’s competitors.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.