Ethereum has had an astounding rebound over the past few weeks. It edged above the $1,800 threshold, reflecting a stable rebound over the last week. ETH’s impressive comeback allows for a successful retest of an important level. Such a move could initiate the conditions for a break towards $2,100 resistance. Against this price backdrop, staked ETH is on the rise, totaling an increase of 627K ETH as of mid-February to mid-May.

This encouraging trend is taking place alongside a steep drop in daily fees on the Ethereum network. Data indicates a significant drop from 5,646 ETH on November 13, 2024, to a mere 292 ETH by May 6, 2025, representing a 94.82% decrease. This stark juxtaposition between increasing staking activity and decreasing fee revenue creates a nuanced picture of Ethereum’s present-day landscape.

Price Momentum and Resistance Levels

Ethereum’s price met significant resistance bullish, with a considerably strong resistance level preventing the asset from making possible upward advances. Nonetheless, Ethereum launched another rally, breaking above the $2,000 resistance for the second time, pointing to restored bullish momentum. This comes in light of the preceding recovery wave above the $1,820 resistance, indicating an ongoing bullish sentiment in the market being more reinforced.

Ethereum’s ability to re-assume these levels of resistance will be key in establishing a higher level of bullish conviction and confirming a new upward trend. Investors and analysts have Ethereum in their focus. They are looking to see if it can stay above these important breakout levels to open up more upside potential.

Shifts in Staking Dynamics

This past summer on the Ethereum network represents a 180-degree shift from staking as originally intended. Between November 16 and February 15, the remaining staked supply decreased by more than 1 million ETH. Yet the time since the Pectra upgrade has seen a turnaround in these staking movements.

The renewed staking boom is just one indication that we may be in an early stage of a broader reshuffling within the Ethereum ecosystem. These dynamics are likely indicative of a broader shift in investor sentiment and strategy, adjusting to an evolving network of upgrades and challenging market conditions.

Balancing Staking and Fee Revenue

This can potentially create an interesting dynamic for Ethereum. The divergence between growing staking activity and cratering fee revenue. Increasing staking numbers reflect this as well, demonstrating robust confidence among holders in the network’s long-term potential. The precipitous decline in daily fees is worrying for off-chain engagement in the near-term.

Investors are excited about the possibilities ahead for Ethereum. We may see a dampening effect in near-term transactional activity on the network. While we may be seeing a near-term lag in on-chain activity, investors are clearly not losing faith in Ethereum’s long-term value. This confidence is what fuels their excitement for the platform.