Ethereum (ETH) drew attention from investors by surging 22% in a single day on May 8th. This is interpreted as a signal to end the bearish market of about 10 weeks since the low of $1,385 recorded on April 9th. In particular, driven by strong buying pressure, the surge continued up to 29% by May 9th, during which short positions exceeding $400 million (approximately 584 billion won) were liquidated. The unexpected strength seems to have shaken the positions of major investors and market makers.
However, the atmosphere in the derivatives market is somewhat different. Despite ETH's steep rebound, investment sentiment in futures and options markets remains at a neutral level. Given that demand for spot-based ETH ETFs has not particularly surged, the market appears unable to determine whether this rise is a sustained trend reversal or just a short-term bounce.
This ETH surge also seems to be linked to Trump's policy shift. Trump has been strengthening a crypto-friendly stance by showing a more flexible position on certain alternative coins. Expectations are spreading that this trend could have a positive impact on altcoins, including ETH.
The market is also raising the possibility that ETH might attempt to break through the $2,000 resistance line again. However, considering the lack of clear directionality in exchange-based derivative positioning, investors are closely watching the next moves rather than definitively declaring a clear trend reversal.
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