Traders are regaining confidence in Ethereum's valuation around $1.8K after a challenging few months. Despite Ethereum's price remaining below $1,900 since March, a potential boost from the upcoming May 7 Ethereum Pectra upgrade may enhance investor sentiment. Concerns linger as the ETH derivatives market shows cautious sentiment among professional traders, reflecting a lack of enthusiasm following the classification of Ether alongside other altcoins by the U.S. government. In April 2025, Ethereum's market capitalization dropped below its top four rivals for the first time, leading to skepticism about whether it can reclaim its position. Despite some optimism for the Pectra upgrade, current derivatives data does not indicate strong bullish sentiment. There is limited demand for leveraged bullish positions, but put and call options suggest professional traders are more comfortable with downside risks now than previously, indicating a stabilizing market perspective. Historically, Ethereum upgrades have correlated with temporary price spikes, and the upcoming upgrade could create renewed interest among investors.

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