ETH Price Stagnates After Pectra Update: What’s Next for Ethereum?

ETH Price Struggles Despite Major Network Upgrade

ETH Price– Ethereum successfully implemented a significant network upgrade, called Pectra, on May 7. However, the price of Ether (ETH) and its derivative metrics have shown a minimal response, leading traders and analysts to question whether Ethereum can still reach $2,200, a 22% increase from its current price.

Weak Futures Premium Reflects Lack of Bullish Sentiment

The ETH futures premium has remained below the neutral 5% threshold, suggesting a lack of enthusiasm from leveraged traders. According to data, this indicator remained at 3% even after the Pectra upgrade, implying that traders didn’t adjust their positions despite the network’s improvements.

Macro Factors and Broader Market Trends

Investors seem focused on macroeconomic concerns, including the risks of a global recession and trade uncertainties. These factors have contributed to a general risk aversion, impacting Ethereum’s performance. Additionally, Ethereum has underperformed the broader cryptocurrency market, lagging by 28% in the first quarter of 2025.

Competition from Other Blockchains

Ethereum faces stiff competition from other blockchains like Solana, which has taken the lead in decentralized exchange (DEX) usage, and BNB Chain, which also boasts a significant user base. The lower base layer fees on Ethereum, now under $1, haven’t been enough to drive significant network activity, especially when compared to other blockchain networks.

Ethereum’s DApp Interoperability Issues

Despite Ethereum’s dominance in total value locked (TVL), other networks such as Solana and Tron have excelled in the decentralized application (DApp) sector, making it easier for users to interact across various platforms. Ethereum’s current challenges in DApp interoperability, even after the Pectra upgrade, are holding back ETH’s price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.