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Key Takeaways:

Traders remain cautious about ETH's price action, but optimistic sentiment is starting to return.

The Ethereum Pectra update on May 7 could boost investor sentiment, but ETH's price action shows that investors are still hesitant to open new positions.

Ether

ETH

€1598

has traded below USD 1,900 since March, leading investors to wonder if the failed attempt to reclaim USD 4,000 in December 2024 marked the end of an era for the leading altcoin. Concerns continue to rise, 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 liquidation period, but this indicator has remained below the neutral threshold.

Part of the lack of enthusiasm stems from disappointment with the U.S. government, as Ether was classified alongside other altcoins in the Executive Order on "Digital Asset Reserve" from March 6. The Trump administration decided that only Bitcoin

BTC

€83,570

was significant enough to be included in its own "Strategic Reserve." Practically, altcoins already held by the government could be retained, but not newly acquired.