- Ether recovered sharply in early May, but demand for spot ETFs and derivatives showed little growth.
- Ethereum remains the top decentralized platform by total value locked, despite reduced investor activity and lower network fees.
- Market sentiment toward Ethereum stayed cautious, even after U.S. President Trump shifted his stance on prominent altcoins.
On May 8, Ether (ETH) jumped by 22%, apparently ending a ten-week market downturn that had bottomed out near $1,385 in April. Despite this significant price rally, interest from investors in spot ETH exchange-traded funds (ETFs) and derivatives did not show a meaningful increase, according to Cointelegraph.
The article states that this sudden rally led to over $400 million in short ETH futures positions being liquidated. While some market participants appeared caught off guard, traders generally remained neutral, with the ETH futures premium staying below the 5% level typically linked to a neutral market. The market data also indicated that ETH has lagged the broader altcoin segment by 17% in 2025.
Analysts cited in the report highlighted that while this environment may give room for further short covering, underlying fundamentals for Ethereum have not seen major improvements. Network upgrades have improved scalability on layer-2 solutions, and Ethereum continues to lead in terms of decentralization and security. The network holds a total value locked (TVL) of $64 billion, significantly more than the combined $22.3 billion TVL of major competitors such as Solana, BNB Chain, and Tron.
Despite these strengths, demand for spot Ethereum ETFs remained limited. Cointelegraph reported a net outflow from U.S.-listed Ether spot ETFs on May 8 of $16 million, marking the third consecutive day of such outflows. Lower activity and an 85% decline in Ethereum network fees from January to April were also identified as factors reducing demand for ETH and negatively impacting staking yields.
Options market data from Deribit highlighted that both put (sell) and call (buy) options were trading near neutral, signaling cautious investor sentiment. The article further notes that Ether could potentially attract more attention if investor attitudes shift, following the news that U.S. President Donald Trump altered his stance on certain altcoins. According to a Politico report cited by Cointelegraph, Trump had changed his position after previously endorsing coins like Solana, Cardano, and XRP in a March social media post.
Although uncertainty remains in Ether’s derivatives and ETF markets, the possibility of a move toward $2,700 exists if overall investment sentiment changes, especially given recent failed lobbying efforts by competing blockchain networks.
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