Key takeaways:
Traders remain cautious about ETH’s price action, but optimistic sentiment is beginning to return.
The May 7, Ethereum Pectra upgrade could boost investor sentiment, but ETH’s price action shows investors are still hesitant to open new positions.
Ether (ETH) has been trading below $1,900 since March, leading investors to question whether the failed attempt to reclaim $4,000 in December 2024 signaled the end of an era for the leading altcoin. Concerns continue to mount as derivatives market data shows that professional traders remain cautious about ETH’s price outlook.
ETH monthly futures should trade at a premium of 5% or more compared to spot markets to compensate for the longer settlement period, but this indicator has held below the neutral threshold.
Ether 3-month futures annualized premium. Source: Laevitas.ch
Part of the lack of enthusiasm stems from disappointment with the United States government, as Ether was