Key takeaways:
-
Reclaiming the $2,200 level remains the first price challenge for ETH.
-
ETH price could recover if the Pectra upgrade leads to a surge in DApp and Ethereum network activity.
Ethereum successfully implemented a key network upgrade on May 7, yet the price of Ether (ETH) remained relatively stagnant, surprising traders and analysts alike. Despite a successful deployment of the Pectra upgrade, there’s active discussion regarding whether ETH can realistically climb by 22% to retake the $2,200 level.
An important indicator to note is the ETH futures premium, which has remained under the 5% neutral threshold. This signifies a lack of interest from leveraged bulls; notably, the premium was unchanged at 3% following the Pectra upgrade, suggesting minimal position adjustments were made by traders despite the upgrade’s successful rollout.
The subdued market reaction can, in part, be attributed to broader macroeconomic concerns, including recession risks and volatility in global trade dynamics. However, it should be noted that interest in Ether had been waning prior to these economic shifts, as ETH underperformed the overall cryptocurrency market capitalization by 28% in the first quarter of 2025.
The Pectra upgrade’s muted impact on price also highlights a growing discontent within the Ethereum community, especially as competing blockchains continue to gain traction.
High transaction fees on the Ethereum network have historically inhibited activity, but costs have now dipped below $1 since mid-February. Despite this, Ethereum’s leading layer-2 solution, Base, has only attracted 10.3 million monthly active users. In comparison, Solana leads with 82.2 million users, while BNB Chain boasts 25.9 million monthly active users.
Ethereum’s Challenges in DApp Interoperability
Solana has established a dominance in the decentralized exchange sector, particularly in the realm of token launches, thanks to a more integrated user experience. This trend is corroborated by Hyperliquid’s success in perpetual futures trading, indicating that traders might not prioritize Ethereum’s decentralization and security as much as their user experience. Concurrently, Tron has made notable advancements in the stablecoin arena.
While Ethereum’s total value locked (TVL) remains impressive at $53.7 billion, this statistic has failed to deliver tangible benefits to ETH holders, as network fees have averaged only $19 million over the past 30 days. For context, Tron has tallied $51.8 million, and Solana has amassed $39.4 million in the same timeframe.
Notably, Noam Hurwitz, head of engineering at Alchemy, remarked that Ethereum blob fees have dropped to their lowest level since the Pectra upgrade. He emphasized that Ethereum’s success hinges on improving scalability, enhancing the rollup mechanism, and ultimately delivering a more seamless user experience.
Conclusion: Bridging assets and data across Ethereum’s layer-2 ecosystem has long posed a challenge. Unlike users on Solana and BNB Chain, who can easily switch between various decentralized applications (DApps), Ethereum continues to struggle with interoperability issues. The Pectra upgrade, while a forward step, has not fully resolved these obstacles, contributing to Ether’s inability to reclaim the $2,200 level witnessed in early March.
For Ether’s price to elevate by 22% from its current $1,810 level, it is critical for investors to gain confidence that developments on the network—whether through accelerated deposits or robust layer-2 growth—will yield substantial benefits. Enhanced staking yields or more appealing incentives will be necessary to foster greater adoption of DApps, which in turn is likely to generate increasing demand for ETH within the ecosystem.
This article is for informational purposes only and should not be construed as legal or investment advice. The views expressed are solely those of the author and do not reflect the opinions of any associated parties.
