Ethereum price greenlit for further upside after surprise 29% ETH rally
Ether (ETH) gained 29% from May 8 to May 9, ending a 10-week bear market that hit a low of $1,385 on April 9. This surge led to over $400 million in liquidated short ETH futures positions, indicating market surprises. Despite the price increase, traders remain neutral on ETH derivatives, with uncertainty about a trend reversal or a test of the $2,000 level. The ETH futures premium has not surpassed 5%, showing limited demand for bullish positions. Ethereum's total value locked (TVL) is $64 billion, significantly higher than competitors Solana, BNB Chain, and Tron, which have a combined TVL of $22.3 billion. However, there are concerns over weak demand for spot Ether ETFs, with net outflows of $16 million on May 8. A sharp decline in Ethereum network fees has reduced overall demand for ETH. ETH options markets reflect neutral sentiment among whales and market makers. A potential rally toward $2,700 could occur if investor sentiment shifts due to competitor lobbying failures.
