Ethereum’s Pectra upgrade was implemented on May 7, but its impact on the Ether price has been muted, with ETH struggling to reclaim the $2,200 price level due to macroeconomic concerns and competition from other blockchains. The ETH futures market shows little bullish sentiment, and overall network activity remains low compared to rivals, raising questions about Ethereum’s future performance and attractiveness to investors.
Ethereum recently rolled out a major network upgrade known as Pectra on May 7. However, despite this significant step, the price of Ether (ETH) has shown a surprisingly subdued reaction. For traders, this tepid market response is a puzzlement, casting doubts on whether ETH can manage to rise 22% to reclaim the $2,200 mark anytime soon.
One of the more telling indicators is the ETH futures premium. It has been hovering below the 5% neutral threshold, last noted at 3%, indicating little enthusiasm from leveraged traders even remaining unchanged after the Pectra deployment. The lack of vigorous trading activity suggests that market participants aren’t adjusting their positions with renewed confidence.
Much of this lack of excitement can be attributed to overarching macroeconomic concerns, including fears of a recession and the complexities of ongoing global trade disputes. But it’s worth noting that traders’ disinterest in Ethereum predates these recent uncertainties. Over the first quarter of 2025, ETH underperformed compared to the total cryptocurrency market valuation, lagging behind by 28%.
The muted impact of the Pectra upgrade also reflects a growing dissatisfaction as rival blockchains gain traction. Even though Ethereum still leads with total value locked (TVL) at $53.7 billion, it’s not translating to tangible benefits for ETH holders. In the last 30 days, network fees have dropped to a relatively low $19 million—quite a contrast to Tron’s $51.8 million and Solana’s $39.4 million.
Interestingly, recent reports indicate that Ethereum blob fees have hit their lowest levels since the Pectra upgrade, according to Noam Hurwitz, the head of engineering at Alchemy. The key for ETH’s future? It hinges on improving base layer scalability and user experience, particularly via rollup enhancements and simpler transaction methods.
Ethereum’s struggle with DApp interoperability also raises questions. Competitor networks like Solana and BNB Chain are thriving by making it easier for users to interact with various DApps. On the other hand, while the Pectra upgrade is positive, it doesn’t completely solve Ethereum’s bridging issues. Consequently, the potential for ETH to recapture the early March price level of $2,200 seems challenging.
For Ether to climb back significantly from its present level of about $1,810, investors will need some reassurance. This could come from more evidence that network upgrades and developments, like deposits or layer-2 growth, lead to concrete benefits. There’s a pressing need for better staking yields or more compelling incentives in order to spark broader adoption of DApps, ultimately driving demand for ETH.
