Source: Cointelegraph.com NewsKey takeaways:<\/p>\n
ETH price rallied by 22% on May 8, but demand for spot ETH ETFs and derivatives remains muted.\u00a0
\nPresident Trump\u2019s reversal on certain altcoins aligns with ETH\u2019s renewed outlook.\u00a0<\/p>\n
Ether (ETH) posted an impressive 29% gain between May 8 and May 9, likely marking the end of a 10-week bear market that bottomed out at $1,385 on April 9. This sharp move triggered the liquidation of over $400 million in short (sell) ETH futures positions, suggesting that whales and market makers were caught off guard. Source: Cointelegraph.com NewsKey takeaways: ETH price rallied by 22% on May 8, but demand for spot ETH ETFs and derivatives remains muted.\u00a0 President Trump\u2019s reversal on certain altcoins aligns with… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128956"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128956"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128956\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128956"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nDespite the surge, traders have maintained a neutral stance in ETH derivatives. 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.
\nEther 3-month futures annualized premium. Source: laevitas.chThe ETH futures premium has yet to exceed the 5% threshold typically associated with a neutral market, indicating that demand for leveraged bullish positions remains notably limited. ETH’s continued underperformance\u2014trailing the altcoin market capitalization by 17% in 2025\u2014helps explain the prevailing lack of investor confidence.
\nSome analysts interpret this as an opening for further short covering, while others contend that Ethereum’s core fundamentals have yet to improve meaningfully.
\nEthereum maintains leadership in decentralization and TVL
\nIrrespective of Ether\u2019s price action, recent network upgrades have notably enhanced layer-2 scalability. More importantly, they have helped solidify Ethereum\u2019s position as the leading platform in terms of decentralization and security. This is reflected in Ethereum\u2019s total value locked (TVL), which stands at $64 billion. For comparison, the three largest direct competitors\u2014Solana, BNB Chain, and Tron\u2014collectively hold a total value locked (TVL) of $22.3 billion.\u00a0
\nThe limited demand for spot Ether exchange-traded funds (ETFs) has emerged as a key warning sign. Even Ether\u2019s strongest single-day price performance in four years failed to prevent a third consecutive day of net outflows, according to data from Farside Investors. On May 8 alone, US-listed Ether spot ETFs experienced net outflows totaling $16 million.
\nEther US-listed spot ETFs’ daily net flows, USD million. Source: Farside InvestorsThe muted enthusiasm following Ether\u2019s recent bullish momentum can be partly attributed to the sharp 85% drop in Ethereum network fees from January to April. Reduced network activity lowers overall demand for ETH and negatively affects net staking yields, as the protocol\u2019s burn mechanism relies on competition for data processing.
\nETH options markets also offer insight into whether whales and market makers anticipate further downside risks.\u00a0
\nDeribit 30-day ETH options delta skew (put-call). Source: Laevitas.chCurrently, put (sell) options are trading at similar levels to equivalent call (buy) options, indicating a neutral sentiment. This outcome is somewhat discouraging for Ether bulls. Nevertheless, Ether could regain market attention after US President Donald Trump reversed his position following earlier public endorsements of competing altcoins.
\nRelated: Ether clocks \u2018insane\u2019 20% candle post Pectra \u2014 A turning point?
\nAccording to a Politico report published on May 8, President Trump felt he had been \u201cused\u201d and had severed ties with the lobbyist who reportedly proposed the idea of a strategic crypto reserve. While Trump\u2019s social media post on March 2 specifically mentioned Solana (SOL), Cardano (ADA), and XRP, the subsequent March 6 \u201cDigital Asset Stockpile\u201d Executive Order struck a much more reserved tone.
\nDespite the evident apathy in both the Ether derivatives market and spot ETF flows, a rally toward the $2,700 level remains plausible\u2014especially if investor sentiment shifts in response to the failed lobbying efforts undertaken by some of Ethereum\u2019s competitors.
\nThis article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"