Current Ethereum Price: $1,860
- Introducing staking in Ethereum ETFs might prove to be a more significant factor for ETH’s price than any technical enhancements.
- The SEC has recognized Fidelity’s application to allow staking in its Ethereum ETF.
- If Ethereum begins to stabilize around current price levels, it could encounter crucial resistance near $2,000.
On Thursday, Ethereum (ETH) was trading at approximately $1,860 during the Asian session, as its price faced pressure from prevailing bearish sentiment across the broader cryptocurrency market. Nevertheless, hopes surrounding the potential approval of staking in US spot Ethereum ETFs could elevate this leading altcoin from its recent underwhelming performance.
Staking may be essential for enhancing Ethereum’s price
The SEC confirmed it has received Fidelity’s proposal for permitting staking in its spot Ethereum ETF (FETH). However, a swift decision from the agency seems improbable, as it recently delayed finalizing numerous crypto ETF applications.
On Tuesday, the SEC postponed decisions regarding ETF applications for Dogecoin, Solana, and XRP. ETF Store president Nate Geraci suggested this is routine procedure, especially since Paul Atkins, appointed by Trump to chair the agency, has not yet received Senate confirmation.
Both Grayscale and 21Shares have also submitted applications to incorporate staking in their spot Ethereum ETFs.
Meanwhile, the upcoming technical upgrade known as Pectra is advancing, promising various user experience enhancements for its blockchain after concluding tests on Holesky and Sepolia. Users eagerly await the mainnet upgrade, with many hopeful it could reverse ETH’s recent price trend, which has lagged behind Bitcoin and Solana.
“While improved technology is promising, it doesn’t overshadow the overall trend of ETH’s underperformance over the past two years,” noted analysts from K33 Research in a report released on Wednesday.
“Nevertheless, potential bullish triggers like the addition of staking rewards in US spot ETH ETFs […] could serve as the necessary impetus for ETH’s momentum and help it regain traction with market participants,” they elaborated.
Analysts at Standard Chartered project that the integration of staking within Ethereum ETFs could propel ETH’s price above $14,000 by the end of the year.
Ethereum Price Outlook: ETH shows no clear direction
In the last 24 hours, there were $60.98 million in futures liquidations involving Ethereum, according to data from Coinglass. The breakdown of long and short liquidations was $34.10 million and $26.88 million, respectively.
ETH currently displays a lack of directional bias, with bulls and bears unable to firmly grasp price movements since rebounding from the $1,750 support level. The leading altcoin must navigate the emerging resistance around $1,960 and break through a significant descending trendline resistance to bolster efforts towards reclaiming $2,200.
ETH/USDT daily chart
However, if Ethereum maintains a consolidated trading range between $1,900 and $2,000, this area could establish itself as a key resistance point.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are nearing their oversold zones, indicating prevailing bearish momentum.
A daily close below $1,500 would contradict the consolidation outlook and push ETH towards $1,000.
Ethereum Development FAQs
Following the Dencun upgrade in March 2024, Ethereum users are looking forward to the Pectra upgrade expected in early 2025. This upgrade will process in two phases and will feature enhancements to wallet experiences, an upgrade to the Ethereum Virtual Machine (EVM), scaling solutions for Layer 2s, increased blob capacity, and more.
Forks refer to upgrades or modifications within the codebase or structure of a blockchain network. Since such networks lack centralized governance, forks only occur when developers and validators reach an agreement. Hard forks are significant, lasting changes that result in two parallel chains, one adhering to the old rules and the other implementing the new changes. Developers can choose to upgrade their software to work with the new chain or continue using the old chain as a distinct network. When a hard fork happens, users receive an equivalent amount of tokens on the new blockchain at a 1:1 ratio. In contrast, soft forks introduce minor changes that are backward-compatible, allowing the network to function as a single entity even when some contributors opt not to adopt the new changes.
Notably drafted by Ethereum co-founder Vitalik Buterin in 22 minutes, Ethereum Improvement Proposal EIP-7702 combines elements of EIP-3074 and ERC-4337 to facilitate extensive adoption of Ethereum’s smart wallet functions. Set to be included in the upcoming Pectra upgrade, EIP-7702 will provide an enhanced version of account abstraction that enables features like batching for multiple actions paid through a single transaction fee, sponsorship for an account to cover gas fees for other users, and options for wallet recovery in case users misplace their seed phrases.
Layer 2 refers to a collection of protocols aimed at enhancing Ethereum’s scalability by processing transaction batches off the main network. After conducting a series of mathematical checks to validate these transactions, Layer 2 solutions send a compressed version back to the main network for final authorization. This functionality results in reduced transaction fees and increased speed on the mainnet while still benefiting from its security. One can think of them as personal assistants who help their employer handle large volumes of paperwork while forwarding a summarized version for approval.
Layer 3 solutions are specific application blockchains that build on existing Layer 2 networks to enhance scalability and interoperability. For instance, an L3 could concentrate on privacy measures, improved scalability, gaming capabilities, or other complex functionalities, all while ultimately securing its operations through the underlying Layer 1.