The world’s second-largest digital asset is facing a serious challenge to its long-held ranking. Ethereum (ETH-USD) has surged over 10% in the last five days to reach $2,263, finding some fresh air after a difficult start to the year. However, even with this recent bounce on ceasefire news, the price is still a massive drop away from its peak of nearly $5,000 just last summer.
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Tether Creeps Up on the Number Two Spot
For the first time in years, people are placing bets that Ethereum might lose its rank as the second-biggest crypto asset. According to the prediction market Polymarket, there is now an almost 60% chance that Tether (USDT-USD) will overtake Ethereum in total market value this year.
At the start of the year, these odds were only 17%. Coin Bureau noted that “with USDT’s market cap sitting at $184 billion, ETH would only need to drop to around $1,500” for this shift to happen. As demand for stablecoins grows in global markets, Ethereum’s total value has been shrinking. If the price falls another 27%, the flip becomes a reality.
Traders Watch a Shaky Trend
While some hope for a recovery, many experts are staying cautious. The market has been stuck in a state of ‘Extreme Fear’ for over 46 days, a level of panic not seen since the 2022 crashes.
Trader TedPillows shared a wary view on X. He wrote that while “ETH has reclaimed the $2,000 level” and might reach $2,150, “after that, Ethereum will most likely continue its downtrend.” This caution in the market is tied to the broader trade wars and high interest rates that have hit both stocks and crypto during the first quarter.
The Glamsterdam Upgrade Creates a New Catalyst for ETH
Not everyone thinks the price will keep falling. Some analysts believe Ethereum is simply being hush before a big move. A major network update called Glamsterdam is coming in June. This update promises to make the network faster and cheaper to use.
Analyst Marietemar pointed out that “ETH is quietly setting up one of the best trades of 2026.” She noted that the price often rallies 25-40% in the weeks leading up to big upgrades. She has set a target zone of $2,600–$2,800 for the early summer. Even big banks like Standard Chartered (SCBFF) are staying hopeful. They are sticking to their year-end goal of $7,500, though that would require the price to more than triple from where it sits today.