Ethereum's Market Sentiment: Pectra Upgrade and Investor Hesitation

Ethereum (ETH) has been trading below $1,900 since March, raising concerns about its future performance. Derivatives market data indicates that professional traders are cautious about ETH's price outlook. The upcoming 'Pectra' network upgrade, scheduled for May 7, could potentially boost investor sentiment. Ether's market capitalization briefly dropped below the combined value of its four largest competitors in April 2025. Currently, ETH's total market capitalization stands at $217 billion. However, weak demand for the Ethereum spot exchange-traded fund (ETF) in the United States persists. Despite Ethereum's dominance in total value locked (TVL), it struggles to match Solana's user experience or Tron's stablecoin dominance. Professional traders are now more comfortable with downside risks than they were two weeks ago. The 'Pectra' network upgrade could renew investor interest by closing the gap with competitors.