Key takeaways:
ETH price rallied by 22% on May 8, but demand for spot ETH ETFs and derivatives remains muted.
President Trump’s reversal on certain altcoins aligns with ETH’s renewed outlook.
Ether (ETH) posted an impressive 29% gain between May 8 and May 9, likely marking the end of a 10-week bear market that bottomed out at $1,385 on April 9. This sharp move triggered the liquidation of over $400 million in short (sell) ETH futures positions, suggesting that whales and market makers were caught off guard.
Despite the surge, traders have maintained a neutral stance in ETH derivatives. Whether this apparent lack of conviction reflects a genuine trend reversal or merely precedes another test of the $2,000 level remains to be seen.
Ether 3-month futures annualized premium. Source: laevitas.ch
The ETH futures premium has yet to exceed the 5% threshold typically associated with a neutral