Ethereum experienced a significant price rally, increasing by 29% between May 8 and May 9, signaling a potential end to a 10-week bear market that had seen prices bottom at $1,385 on April 9. This surge led to over $400 million in short ETH futures liquidations, indicating that market participants were caught off guard. Despite this momentum, interest in spot ETH ETFs and derivatives remains low, with net outflows continuing even on days of strong price action. Analysts note that Ethereum’s fundamentals and the overall demand for ETH are still underwhelming, as reflected in its 17% underperformance compared to the altcoin market in 2025. Network upgrades have improved Ethereum's decentralization and security, helping it maintain a lead in total value locked (TVL), currently at $64 billion. However, reduced network activity, highlighted by an 85% drop in network fees, raises concerns about ongoing demand for ETH. The outlook remains cautious, with potential resistance near the $2,700 level and investor sentiment still uncertain.

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