Ethereum also recently passed the major milestone of having 35 million ETH staked, worth about $140 billion. This 3,400% spike in staking activity since mid-2021 is a clear signal of investor confidence. The added staking coincides with the crypto project anticipating a watershed decision on its ETF.

At the time of writing, ETH is trading at $2,447.10, up 0.66% on the day. Nonetheless, TRB has seen a 2.04% decline during the last week. Even with the recent loss, the 24-hour trading volume has gone up by 0.83%, totaling $18.58 billion.

Ethereum Staking Milestone

The increase in staked Ethereum underscores how much the network has changed since its move to a proof-of-stake architecture. That’s why the ETH 2.0 upgrade in 2022 almost completely eliminated Ethereum’s consumption of electricity, reducing it by more than 99.95%. This change has transformed the network’s environmental footprint. As a result, it has spurred many more users to stake their ETH, which strengthens network security and stability.

Achieving the 35 million ETH staked milestone so quickly is a testament to the confidence that users have in Ethereum’s long-term promise. Investors are very clearly choosing to increasingly lock up their holdings to earn rewards, a vote of confidence in the network’s long-term prospects. With every ETH that gets staked, the circulating supply becomes smaller. This decrease can lead to an increase in price, particularly if demand remains constant or increases.

The huge uptick in staking activity is symptomatic of the larger institutional interest in Ethereum. Reflections on an Ethereum ETF Institutions are preparing for an Ethereum ETF to get approved. They are seeking to benefit from the expected wave of institutional capital entering the crypto market.

Market Analysis and Price Predictions

Recent technical analysis shows that Ethereum’s price has recently encountered significant resistance in the market.

ETH has dropped below the important $2,400 support level after moving sideways for a while. This makes the short-term outlook look negative. If the price doesn’t go back up soon, the next strong support could be around $2,100. But if buyers take control again, the price could rise to $2,760 or even $3,000." - c3_trading

The Ethereum forecast for the middle of June is $2,585.34.

Today, Ethereum’s medium-term outlook is bearish, and its long-term outlook is still neutral because of market conditions. Investors should watch for Ethereum regaining the $2,400 level or finding support around $2,100.

ETF Decision and Market Impact

In addition to regulatory clarity, perhaps the most crucial element driving bullish sentiment is the near-expected approval of an Ethereum ETF. Indeed, approval of an Ethereum ETF would bring unprecedented levels of accessibility to Ethereum for institutional and retail investors. Given the current market environment, that could result in a new wave of capital coming into the space, potentially increasing demand and price for Ethereum.

Even before the decision, all the hype around the ETF has played a role in driving up this positive staking activity. Investors are already betting on Ethereum prevailing as the long-term winner. They think an ETF will provide the necessary legitimacy and impetus to bring the cryptocurrency into the mainstream.

The market is skittish and Ethereum prices are still volatile. The ETF decision will have a much greater positive or negative long-term impact on the smart contracts space—pretty much by definition.