Ethereum (ETH) price is expected to surge this week due to the launch of a spot Ethereum ETF.
But the bigger question is whether the heightened interest surrounding ETFs can reignite interest in staking.
Ethereum spot ETF that could make a big difference
Ethereum experienced extreme strength as it transitioned from proof-of-work to proof-of-stake. Ethereum introduced a new form of return to Ethereum holders that Bitcoin, a proof-of-work chain, could not provide.
Additionally, Ethereum staking brings partial governance power as investors become an integral part of the chain by becoming or endorsing validators.
This ideology has led to millions of ether being staked on the chain. However, with the introduction of restaking in June 2023, a large amount of staked Ether was leaked, and this has continued since May 24 of this year.
Once the spot Ethereum ETF application was approved on May 23, validators stopped staking. Since then, the number of validators holding at least 32 Ethereum, or unique addresses, has remained stable at around 116,480.
Read more: How to invest in Ethereum ETF?
Nonetheless, the launch of spot ETFs is expected to reignite interest in staking. Regarding this, Chen Arad, co-founder and CXO of Solidus Lab, said in an exclusive interview with BeInCrypto:
“Going forward, a key element of institutional interest in Ethereum ETFs will be the staking of Ethereum held by ETF funds, which is not included in the currently approved rule changes and proposals. This could make the Ethereum ETF a more attractive product for more investors and open the door to more institutional inflow and participation in decentralized finance.
However, for regulators to become comfortable with staking in Ethereum ETF funds, the industry must continue to address fundamental concerns about compliance and security risks during FreeChain block construction.”
This could have a similar bullish impact on the price of Ethereum.
Ethereum Price Prediction: Eyes on $4,000
Ethereum price rebounded from $3,336 , the support level of the 38.2% Fibonacci retracement level. Ethereum, a second-generation cryptocurrency, is currently trading at $3,474. There are expectations that Ethereum will recover the 50% Fibonacci line at $3,582.
In this case, the Ethereum price could recover significantly, potentially turning the 61.8% Fibonacci line into support. This level is $3,829, which could push Ethereum to $4,000 in the long term.
Read more: Ethereum (ETH) price prediction 2024/2025/2030
On the other hand, failure to break through these key resistance levels could slow the recovery. If Ethereum investors sell their holdings during this period, the altcoin could fall back to $3,336, invalidating the bullish logic.
