Ether was the biggest beneficiary of the recent comeback, shooting up 29% from May 8 to May 9. This widely welcome surge would signal the conclusion of a new 10-week long bear market. It had receded to a nadir of $1,385 on April 9. The rally sparked liquidation of more than $400 million in short Ether futures positions. Appetite for spot Ether ETFs and derivatives was very much subdued. This absence of enthusiasm raises questions about the sustainability of the positive trajectory.
Ether’s 22% surge on May 8 was the asset’s biggest single-day price increase in four years. Nevertheless, US-listed Ether spot ETFs saw $16 million in net outflows that very day. This poor ETF performance despite substantial price appreciation should give any investor seeking conviction pause.
At the moment, Ether put options are trading at par with calls, indicating that investors have a neutral outlook. This balance of forces indicates that the market is not excessively bullish or bearish on Ether’s short-term future. Whether this apparent lack of conviction reflects a genuine trend reversal or merely precedes another test of the $2,000 level remains to be seen.
Ether’s total value locked (TVL) is $64 billion, highlighting its unquestionable leadership in the decentralized finance (DeFi) space. By contrast, Ether’s three biggest direct competitors—Solana, BNB Chain, and Tron—have a combined $22.3 billion in TVL.
Ether’s market moment may be back again. All of this would finally come to fruition after US President Donald Trump surprised all by pivoting towards – and away from previous endorsements of rival altcoins. With President Trump’s change of heart, Ether’s fortunes have changed, now potentially laying the groundwork for greater institutional interest and wider market adoption.
Recent price action has the analyst community feeling bullish. Most think an upside move back towards the $2,700 range is still in the cards. Investor sentiment will shift sharply once a few of Ethereum’s competitors are shot down in their lobbying attempts. That is a huge shift — particularly so in today’s dynamic market. The market awaits with bated breath. It’s looking to find out if that extraordinary 20% candle following Pectra marks a true milestone for Ether.
Not even Ether’s best single-day price performance in four years could stop a third-straight day of net outflows. If Pectra wins and/or Trump gets involved the outlook for Ether would be much rosier.
