Main takeout:
Traders have been prudent but optimistic about ETH’s price behavior.
On May 7, the Etherum PECTRA upgrade can increase investor feelings, but according to ETH’s price behavior, investors are still hesitant to open their new positions.
ETH (ETH) has been trading for less than $ 1,900 since March, questioning whether an attempt to recover $ 4,000 in December 2024 has failed. According to the derivative market data, professional traders have been cautious about ETH’s price outlook.
ETH monthly futures should be traded at more than 5% of premiums compared to the spot market to compensate for a longer settlement period, but this indicator has been maintained for less than neutral critical prices.
Ether was classified together with other Altcoin in the “Digital Asset Stock” administrative order on March 6, and some of the lack of passion came from disappointment with the US government. The Trump administration has decided that only Bitcoin (BTC) is important enough to be included in its own “strategic protection area”. Practically, the government already has Altcoins, but it cannot be newly acquired.
Etter’s market cap falls below the top four rivals.
For the first time in April 2025, Ether’s market capitalization fell below the sum of four competitors of Solana (SOL), BNB, Cardano (ADA) and TRON (TRX).
After rebounding at the minimum of $ 1,400, Ether’s total market cap has now reached $ 217 billion, which is enough to surpass the combined value of four major competitors. However, if Ether does not continue to perform such competitors, emotions will not improve. Some traders have high hope for upgrading upgrades of the upgrades, but the current derivatives do not reflect the prospect of strong.
The decline in ethers also matched the weak demand for the Etherum Spot Exchange Transaction Fund (ETF) in the United States. Even though ETH’s prices rose from $ 2,400 to $ 4,000 between October and December 2024, they lacked institutional interests. In contrast, Bitcoin ETFS has more than doubled its assets, increasing from $ 50 billion in October 2024 to $ 110 billion in October 2024.
Ether Leeum leads to TVL, but there is a catch.
Ethereum was dominant in terms of Total Value Locked (TVL), but it was difficult to match the power of TRON in the integrated user experience of Solana or the Stablecoin sector. The trader seems to be not interested in Ether Leeum’s higher decentralization or security improvement, and provides the advantages of limited layer -2 solutions for frequent deposits and withdrawal activities.
The lack of demand for use does not mean that a professional trader expects to fall in additional prices. If whales and market manufacturers do not want to provide disadvantages, this is reflected in the ETH option market, increasing the risk of market downturn.
Contrary to some expectations, the PUT options are traded at a level similar to the call (purchase) option. In particular, professional traders are now more comfortable to drop than two weeks ago. ETH derivatives do not show strong strong feelings, but professional traders do not suggest that they are worried about further drops at the current price level.
relevant: The 3 Ether Lee Rim Chart Flash Signal was the last time in 2017 when the ETH price increased by 25,000%.
The upgrade of the upgrade of the upgrades of the upgrades can have a positive impact on Ether’s price. The event, scheduled for May 7, ends the gap with some competitors to renew the interest in the project. Designed for institutional investors, the Staying King Mechanism can reduce the circulation supply by becoming more ETH in valid nodes. Historically, the Etherrium upgrade is often associated with short spikes at ETH prices.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.