"Ethereum Surges 29%: What's Next for ETH Price?"

Ethereum Price Surge Signals Further Upside Potential after 29% Rally

Ethereum (ETH) experienced a remarkable 29% surge in price between May 8 and May 9, bringing an end to a 10-week bear market that hit a low of $1,385 on April 9. This sudden price movement resulted in the liquidation of over $400 million in short ETH futures positions, catching many whales and market makers off guard.

Despite this substantial rally, the demand for spot ETH exchange-traded funds (ETFs) and derivatives remains subdued. The crypto market was surprised by President Trump's recent favorable comments on certain altcoins, which align with Ethereum's improved outlook.

Ethereum's Derivatives Market Neutral, but Technicals Show Signs of Reversal

The Ethereum futures premium has not surpassed the 5% threshold typically associated with a balanced market, indicating limited interest in leveraged bullish positions. ETH's relative underperformance compared to other altcoins, trailing by 17% in 2025, contributes to the prevailing cautious sentiment among investors.

While some analysts view this as an opportunity for short covering, others argue that Ethereum's underlying fundamentals have yet to show substantial improvement, warranting caution.

Ethereum Leads in Decentralization and Total Value Locked(TVL)

Irrespective of price movements, recent upgrades to the Ethereum network have significantly boosted layer-2 scalability, reinforcing its position as the top platform for decentralization and security. Ethereum's total value locked (TVL) stands at $64 billion, significantly higher than its closest competitors, Solana, BNB Chain, and Tron, with a combined TVL of $22.3 billion.

However, the limited interest in spot Ether ETFs is a cause for concern. Despite Ether's strong price performance, there were net outflows from US-listed Ether spot ETFs for the third consecutive day, with $16 million leaving the market on May 8 alone.

Ethereum's Network Activity and Options Market Reflect Uncertainty

The recent drop in Ethereum network fees by 85% from January to April has led to reduced network activity, impacting overall demand for ETH and staking yields. The Ether options market suggests a neutral sentiment, with put options trading at similar levels to call options, indicating a lack of conviction from market participants.

Although the outlook for Ethereum remains uncertain, the shift in sentiment following President Trump's change of stance on competing altcoins could potentially drive renewed interest in Ethereum.

This article provides general information and should not be construed as legal or investment advice. The views expressed are the author's own and do not necessarily reflect those of the publication.