Introduction
Ethereum (ETH) recently posted a stunning 29% gain in just 24 hours, seemingly marking the end of a 10-week bearish cycle. Yet despite the rally, investor enthusiasm remains tepid—especially in the derivatives market and among spot Ether ETF flows. Analysts are divided on whether this surge is sustainable or merely a temporary bounce.
Mixed Sentiment: ETF Outflows & Derivative Neutrality
Despite ETH’s strongest daily performance in years, U.S.-listed spot Ethereum ETFs saw a net outflow of $16 million on the same day. Meanwhile, the ETH futures premium remains below the 5% threshold, indicating weak demand for leveraged bullish bets.
Options markets reinforce this sentiment. With put and call options priced similarly, traders appear undecided. The rally liquidated over $400 million in short positions, but whales and institutional players seem to be waiting on more confirmation before entering aggressively.
Ethereum’s Fundamentals Still Lead the Market
Even amid market hesitancy, Ethereum maintains dominance in decentralization and security. Its total value locked (TVL) stands at $64 billion, dwarfing Solana, BNB Chain, and Tron’s combined $22.3 billion.
Recent upgrades to Ethereum’s layer-2 infrastructure are enhancing scalability without compromising decentralization. While short-term price action fluctuates, ETH continues to attract developers and long-term value.
Trump’s Altcoin Pivot Boosts ETH’s Narrative
Adding political fuel to the mix, President Donald Trump recently reversed his stance on certain altcoins, a move some believe aligns with Ethereum’s comeback. This comes after a controversial executive order proposed a strategic digital asset stockpile.
Although Solana and Cardano were originally highlighted, Ethereum’s neutrality and institutional support now seem to align more with the White House’s evolving crypto position.
Is $2,700 Within Reach?
Despite underwhelming ETF inflows and reduced network fees (down 85% from January to April), a breakout toward $2,700 remains possible. Reduced fees signal less on-chain activity but also reflect improved efficiency from scaling solutions.
Investor sentiment could shift if competitors like XRP or SOL continue struggling with regulation or fail to gain traction with policymakers.
Conclusion
Ethereum’s rally was fierce, but follow-through remains uncertain. Institutional interest is cautious, and traders remain split. Still, with ETH leading in decentralization, TVL, and network upgrades, it’s too early to count it out. A return to sustained bullish momentum may hinge not on price action—but on macro sentiment, policy shifts, and ETF volume trends.