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Merchants remain cautious about the action of ETH prices, but the optimistic feeling begins to return.
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The upgrade of May 7, Ethereum Pectra could stimulate the feeling of investors, but the action of ETH prices shows that investors are still hesitating to open new positions.
Ether (ETH) has been negotiated below $ 1,900 since March, which has led investors to wonder if the failed attempt to recover $ 4,000 in December 2024 reported the end of an era for Altcoin Leader. The concerns continue to rise as data on the derivative market show that professional traders remain cautious about the prices of ETH prices.
ETH monthly term contracts should be negotiated at a 5% or more bonus compared to cash markets to compensate for the longer payment period, but this indicator was kept below the neutral threshold.
Part of the lack of enthusiasm arises from disappointment with the government of the United States, because Ether was classified alongside other altcoins in the decree of “Digital Asset Stockpile” on March 6. The Trump administration decided that only Bitcoin (BTC) was important enough to be included in its own “strategic reserve”. In practical terms, the Altcoins already held by the government could be preserved, but not newly acquired.
Ether’s market capitalization falls below its four main rivals
For the first time, in April 2025, Ether’s market capitalization fell below the combined value of its four largest competitors: Solana (Sol), BNB, Cardano (ADA) and Tron (TRX).
After having rebounded in low $ 1,400, the total market capitalization of Ether is now $ 217 billion, which is sufficient to exceed the combined value of its four main competitors. However, unless ether regularly surpasses these rivals, it is unlikely that feeling will improve. Some traders have great hopes for the next upgrade of the “Pectra” network, but the current derivative data does not reflect an increased perspective.
Ether’s decline also coincided with a low request for the Ethereum Stock Exchange (ETF) in the United States. Institutional interests lacked, despite the price of the ETH, going from $ 2,400 to $ 4,000 between October and December 2024. On the other hand, Bitcoin ETF experienced more than double assets, going from $ 50 billion in October 2024 to 110 billion dollars currently.
Ethereum leads in TVL, but there is a catch
Although Ethereum remains dominant in terms of total locked value (TVL), he had trouble corresponding to the integrated user experience of Solana or the domination of Tron in the stable sector. Traders do not seem to be interested in higher decentralization of Ethereum or an improved guarantee, in particular for activities involving deposits and frequent withdrawals, where layer 2 solutions offer limited advantages.
The absence of requests for optimistic ETH stations with leverage does not necessarily mean that professional merchants expect an additional drop in prices. If whales and market manufacturers did not want to offer downward protection, this would be reflected in the ETH options markets, reporting an increased risk of slowdown.
Unlike certain expectations, put options (sale) are negotiated at levels similar to call options (buy). In particular, professional traders are now more comfortable with the lower risks than they were two weeks ago. Although ETH derivatives do not report a strong bullish feeling, they also do not suggest that professional merchants are concerned about the additional decline at current price levels.
In relation: 3 Charters Ethereum Signal Flash Signal seen for the last time in 2017 when ETH Price joined 25,000%
There is a chance that the next upgrade of the “Pectra” network can positively affect Ether’s price. Scheduled for May 7, this event could renew the interest of investors in the project by filling the gap with some of its competitors. The development mechanisms designed for institutional investors could lead to more eTh locked in validator’s nodes, reducing the supply in circulation. Historically, Ethereum upgrades have often been associated with brief tips of the price of ETH.
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.
